Technicolor Post, a division of France-headquartered post-production giant Technicolor, is to be acquired by L.A.-based Streamland Media (formerly Picture Head Holdings) in a significant shakeup of the post-production industry.

The two parties have entered into an agreement and, pending the completion of customary closing conditions, the deal is expected to close in the first half of 2021, according to Streamland. The transaction is backed by Trive Capital and Five Crowns Capital. Financial terms were not disclosed.

The assets of Technicolor Post – which has offices in Vancouver (Technicolor Vancouver) and Toronto (Technicolor Toronto) – will now be integrated into Streamland’s existing portfolio of companies, which includes Picture Shop, Formosa Group, Ghost VFX (which recently opened a Vancouver outpost), Picture Head, The Farm Group, and Vancouver-based Finalé Post. Technicolor Post’s primary line of business is colour and sound finishing services.

Parent company Technicolor also owns Mr. X in Toronto and Montreal, MPC in Montreal and Mikros in Montreal. Those companies are not part of this transaction.

According to Technicolor, the sale of its Technicolor Post division represents an “ongoing transformation” led by new CEO Richard Moat, with the sale enabling it to focus more on VFX and animation rather than the final services of color and sound.

“Adding Technicolor Post’s technologies and worldwide locations to Streamland will allow us to partner with all of our clients to an even greater degree,” said Streamland Media CEO Bill Romeo in a statement, which also noted that “all employees dedicated to Technicolor Post will be part of this transaction.”

Like all parts of the film and TV ecosystem, the post-production sector has been hit hard by the pandemic. Across the world, post houses have felt the knock-on effect of the production shutdown, leading many to lay off staff as the sector deals with a shortage of work.

Technicolor was among the companies that felt those financial pressures acutely. In June, Technicolor filed for Chapter 15 in a bankruptcy court in Texas as it looked to implement a financial restructure amid the COVID-19 pandemic. At the time, it said its goal was to obtain around US$470 million in new financing while reducing debt.

“The strategic sale of Technicolor Post is part of our long-term vision for Technicolor Production Services to focus on VFX and animation for the entertainment industry, and creative services and technologies for the advertising industry, which provide the maximum value to our clients. We will continue to focus on these core areas through our award-winning creative studios The Mill, MPC, Mr. X and Mikros Animation,” added Moat.

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