MUMBAI: Technicolor is planning to acquire Cinram Group's North American optical disc manufacturing and distribution assets. The move comes in the wake of Technicolor's advanced negotiations with two large US customers to assume their contracts for the replication and distribution of packaged media products (DVD and Blu-ray discs) in North America.

The value of the acquisition in the range of €35 - 40 million and will be entirely funded out of available cash.

As a result of this acquisition, Technicolor's expanded operational platform could also serve to support other new customer additions in North America, in a manner consistent with the Group’s strategy of optimising the operating leverage of its packaged media products activities.

The purchase agreement with Cinram Group, Inc. is subject to obtaining certain consents as well as other customary closing conditions.

The transfer of the contracts and assets to Technicolor could occur as early as November 2015.

The customer contracts, if concluded, would add in excess of €190 million in annualised revenues to Technicolor’s Entertainment Services segment. This would have no impact on the Group’s Adjusted EBITDA and Free Cash Flow objectives for 2015.