Scarborough, Ont.-headquartered Cinram International, an independent provider of prerecorded multimedia products and services, has signed a multiyear agreement with Twentieth Century Fox Home Entertainment, the home video division of Fox Entertainment Group, ending in part the studio’s decade-long relationship with Los Angeles-based Deluxe Video Services.

The deal calls for Cinram to be the exclusive manufacturer and distributor of tcfhe’s vhs videocassettes in the u.s. and Canada, which Cinram believes will generate $750 million in total revenues. To accommodate this growth in production, the company plans to expand its Huntsville, Alabama, location, which will house a new distribution facility.

Cinram is highly optimistic about the deal, even as videotape slowly gives way to digital technology among consumers.

Isidore Philosophe, chairman and ceo of Cinram, said in a statement: ‘This agreement leverages our existing relationship with tcfhe in Canada. It also provides a solid foundation for future u.s. expansion in the vhs and dvd marketplace.’

Cinram, with facilities in Canada, the u.s., Europe and Latin America, manufactures and distributes prerecorded vhs tapes, audio cassettes, cds, cd-roms, and dvds for motion picture studios, music labels, publishers, and computer software companies around the globe.

Shares in the company jumped 13% on June 14 after the announcement of the tcfhe deal.

www.cinram.com