Another major Canadian post shop is set to be swallowed by a global giant, as Technicolor Creative Services Canada, a subsidiary of France-based Thomson, has entered a pre-acquisition agreement with the publicly traded Command Post and Transfer Corporation.

Technicolor’s bid, agreed upon by Command, was to be made on or before April 7 and would remain open for 36 days unless withdrawn or extended. It would see Technicolor obtain 100% of Command common shares for $0.04 in cash per share. Command shares were steady and closed on the TSX at $0.65 per share on April 6. Technicolor’s offer would see 75% of outstanding Command shares being tendered to the bid.

Technicolor would pay up to $18 million to fund its offering price and enable Command to repay its bank, redeem some outstanding shares, and settle debts to Standard Broadcasting Corporation and Dome Productions, with regards to shareholder advances and convertible debentures. The latter two companies and certain other Command shareholders would tender their shares to the offer, making up 98.5% of outstanding shares.

Command can accept a competing superior bid within six months, but cannot solicit any other offers itself.

Command is one of Canada’s top post-production companies, operating the Toybox audio and video post facilities and alphacine film labs in Toronto and Vancouver. Command took over former Toronto post shop DAVE in 2001, and Toybox was underway on a sizable expansion in the newly acquired location as of last year. Like many Toronto-based post firms, Toybox lost potential business last year when Toronto was passed over by major Hollywood service productions for reasons including SARS. Among the feathers in its cap is its FX work on Oscar winner Chicago.

Technicolor bought Montreal post house Covitec in 2000, was afterwards itself bought by Thomson, then opened its Technicolor Mirabel film lab in the Montreal suburbs in 2002. Thomson is a global company that, in addition to its own brand, also owns Grass Valley and RCA. The purchase of Command would be a further step towards Technicolor offering the Canadian production community a full set of networked solutions.

-www.compt.com

-www.thomson.net