DEAL'S A WRAP FOR FOUR MEDIA; WARBURG TO CONTROL POST-PRODUCTION FIRM.Byline: Dave McNary McNary may refer to:
Post-production specialist Four Media Co. agreed Tuesday to turn over control to Wall Street investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. Warburg Pincus Warburg Pincus is a private equity firm with offices in the United States, Europe and Asia. It has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, and invests in a range of industries including information and Equity Partners in exchange for an $80 million investment. Four Media, which has been aggressively buying smaller rivals, said the funds will allow it to continue expansion through further acquisitions. The 6-year-old company, with 1,350 employees and annual revenues of $200 million, wants to become Hollywood's leader in one-stop services such as editing, mixing, language translation and conversion to overseas technical standards. Warburg War·burg , Otto Heinrich 1883-1970. German biochemist. He won a 1931 Nobel Prize for research on the respiration of cells. will own 51 percent of Four Media following completion of the deal, which will give it 10.2 million existing and new shares. Under the three-part transaction, Warburg will pay a 14 percent premium over Four Media's closing stock price Friday. Wall Street endorsed the deal with shares rising $1.125 Tuesday to $8 for a 16 percent gain. ``This is obviously a very positive announcement,'' said media analyst Stewart Halpern of ING Barings Furman Selz, who has a 12-month target price of $12 a share. ``It really gives the company additional financial firepower fire·pow·er n. 1. The capacity, as of a weapon, weapons system, military unit, or position, for delivering fire. 2. The ability to deliver fire against an enemy in combat. Noun 1. to do more acquisitions.'' The company, which went public in 1997 at $10 a share, had been controlled by Wall Street investor Michael Steinhardt Michael Steinhardt (born 1940) is an American businessman and was a one of the first prominent hedge fund managers. He founded Steinhardt, Fine, Berkowitz & Co. , who owned 33 percent, and Four Media Chairman and Chief Executive Officer Robert Walston, who owned 15 percent. Steinhardt will cash out his stake while Walston and other managers will own about 10 percent. Four Media also announced former Panavision executive Jeffrey Marcketta has been named to the newly created posts of president and chief administrative officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive . Marcketta left Panavision last year after financier Ronald Perelman For the actor, see . Ronald Owen Perelman (born January 1, 1943) is an American billionaire investor who made his fortune buying beleaguered corporations and re-selling them later for enormous profits. bought out Warburg's majority ownership of the Woodland Hills-based movie camera specialist. Halpern said Warburg carries a strong reputation as a savvy investment group and noted that the changes help position Four Media for growth amid increasing worldwide demand for its services. ``The company's business is very viable,'' he added. ``On a global basis, entertainment content-related businesses are growing at low-double-digit rates so the creation of new content and use of existing libraries requires the kind of services Four Media provides. It's a winning story.'' Four Media reported earnings last month of $1.98 million, or 16 cents a share, in its first quarter ended Nov. 1, up sharply from earnings of $225,000 in the 1997 period. Revenues were up 81.7 percent to $49.5 million. |
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