Montreal: In a move designed to build corporate muscle and ensure expansion into new markets, Groupe Coscient has acquired 100% of Productions sda and Allegro Films. The merger makes Coscient Quebec’s largest integrated film and tv production/distribution company, according to its president and ceo, Richard Laferriere.

The cash and stock swap, worth an estimated $10 million, places each of the partners in an improved investment position ‘because investors are more receptive to bigger groups,’ says Groupe Coscient chairman Yves Moquin.

‘We all have the same preoccupations,’ says Moquin. ‘If you really want to grow and take advantage of the new opportunities, you have to position yourself for better access to facilities and financing.’

He says the corporate merger ‘creates a solution where we can talk to both North America and Europe for more coproduction.’

Laferriere says the deal will mean revenues of $45 million for his company in 1994, up from $16 million in ’93. He says projected revenues for 1995 could reach $75 million.

sda, headed by president Francois Champagne, is a leading Quebec producer of television drama series and children’s programs, including the highly-rated newsroom drama Scoop and the kids’ show Les debrouillards. It also produces variety programming and corporate and government videos, and owns and operates Studio Centreville, a post-production and tv studio facility located in downtown Montreal.

Last year, it reported sales of $16 million .

In the swap, sda acquires 15% of the shares of Groupe Coscient, with about 6% of those shares held by Cogeco Radio-Television, a minority shareholder in sda.

In a prepared statement, veteran producer Champagne said: ‘This synergy will help us maintain the quality and success of our Quebec productions.’ He later told Playback that sda is in active negotiation on ‘a couple of major deals.’

Allegro Films, headed by president Tom Berry, produces and distributes theatrical and tv movies for the international English-language market, specifically the tv and home video market in the u.s. It has also produced French-track features with Telefilm Canada financing.

Its operations include Allegro Films Distribution, headed by president Franco Battista, and Multi-Montage, a busy post-production and editing facility in the city’s east end.

Allegro productions (The Neighbor, The Child, Deadbolt) have been sold to cbs, Republic Pictures, Columbia TriStar and others in the u.s. market. Allegro is also the distributor of Roger Cantin’s box office hit Matusalem.

In fiscal 1992/93, the company reported revenues of $9 million. The deal, subject to the approval of Quebec securities authorities, gives Berry and partners an 11% share of Groupe Coscient.

Groupe Coscient president and ceo Richard Laferriere says the merger will mean revenues of $45 million for his company in 1994, up from $16 million in ’93. He says projected revenues for 1995 could reach $75 million, and claims the deal makes Groupe Coscient Quebec’s largest integrated film and tv production/distribution company.

The operations of sda, Allegro and Coscient, Groupe Coscient’s production arm, will remain independent under existing management, says Laurent Goudreau, the group’s executive vice-president. Andre Larin, a former vice-president with Cogeco Radio-Television, recently joined Coscient as its new president.

A year and a half ago, Groupe Coscient acquired a 35% interest in Cite-Amerique, at a cost of $750,000. Cite-Amerique produces high-end tv drama and feature films, including Quebec ratings hits Les Filles de Caleb (Emilie) and Blanche.

Groupe Coscient is traded on both the Montreal and Vancouver stock exchanges. LRB