AP Online
06-06-2000
Lions Gate Buys Trimark Holdings
LOS ANGELES (AP) -- Lions Gate Entertainment, an independent film producer based in Canada, will buy U.S.-based Trimark Holdings in a deal valued at $50 million.
Trimark is a video distribution company and low-budget movie producer whose recent releases include ``Beautiful People'' and ``The Last September.'' The company also distributes many NBC programs on home video, including episodes of ``Saturday Night Live.''
Lions Gate recently released ``American Psycho,'' and ``The Big Kahuna,'' a film starring Kevin Spacey and Danny DeVito.
Lions Gate announced Tuesday it will swap up to $4.50 in cash and two shares of Lions Gate Entertainment for each share of Trimark stock, with a provision to ensure the minimum is $10 per Trimark share.
Lions Gate also will acquire Trimark's debt. The deal is subject to the closing of an expanded credit line and regulatory and shareholder approval.
Jon Feltheimer, Lions Gate chief executive officer, said low budget genre films would continue to be released under the Trimark label, but that most operations would be consolidated under Lions Gate management. Trimark CEO Mark Amin will join Lions Gate's board and become vice chairman.
The deal has been expected for some time as Lions Gate pursues a strategy of expanding its reach into film, home video and DVD distribution and the Internet through acquisitions. The company already has a 45 percent stake in Mandalay Pictures, an independent film company behind such movies as ``Sleepy Hollow.'' The company also owns studios in Vancouver, a magnet for U.S. film and television production because of the lower costs of filming there.
Feltheimer said Lions Gate will continue to look for companies ``that have the kind of quality and fit that Trimark has. But we will not go running willy-nilly to acquire every company in town.''
Lions Gate ended trading on the American Stock Exchange Tuesday at $2.69 per share, up 13 percent. Trimark finished at $8.22 per share, up 3 percent, on the Nasdaq Stock Market.
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On the Net:
http://www.lionsgate-ent.com
http://www.trimarkpictures.com
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