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Cinram Completes JVC Acquisition, Moves Replication Biz to U.S.

18 Jun, 2014 By: Erik Gruenwedel, Chris Tribbey

Cinram has completed its acquisition of JVC Americas Corp., and reportedly is moving all disc replication business from Canada to JVC’s facilities in Tuscaloosa, Ala., and Kennesaw, Ga. Its corporate headquarters will remain in Toronto.

JVC’s manufacturing and fulfillment operations in the Southeast will now be known as Cinram Operations, Inc.

“This is both a complementary and supplementary deal,” Cinram CEO Steve Brown said in a June 16 statement. “While we share many of the same services, there are operational facets that will strengthen our supply chain offerings and position us to handle a broader spectrum of products and customers.”

In an interview with DVD-and-Beyond.com in the United Kingdom, Brown said the 55 Canadian employees downsized by the move were a sign of the times in the packaged-media business. Scuttlebutt suggests the move was also influenced by Cinram's loss of a replication contract with Alliance Films after it was acquired by eOne, which has a replication deal with Sony DADC.

"The replication industry has been experiencing volume challenges over the last few years and the Canadian physical media market has been no exception to this decline," Brown said. "Our decision was most difficult given the company's origins and history in Canada, but the relocation of our Canadian replication operations allows us to sustain a commercially viable distribution and fulfillment footprint in Canada. It gives us the ability to continue supporting our clients in the most efficient and effective way possible."

Cinram employs about 6,000 people globally.

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