Monday October 9, 2000
FOR MORE INFORMATION CONTACT: Brannan Atkinson Ingram Entertainment Inc. Jan Vermillion LDI Ltd. 317-635-9175
INGRAM ENTERTAINMENT ANNOUNCES AN AGREEMENT TO ACQUIRE MAJOR VIDEO CONCEPTS INC. FROM LDI
NASHVILLE, Tenn., October 9, 2000 - Ingram Entertainment Inc. (www.ingramentertainment.com), the leading national distributor of home entertainment products, announced today it has signed an agreement to purchase the assets of Major Video Concepts Inc. (MVC) from LDI Ltd. The sale is expected to close later this week.
David Ingram, Chairman and President of Ingram Entertainment, said continuing consolidation and rapid change in the video rental industry were key factors in the decision to acquire MVC. Last week Universal Studios Home Video named Ingram Entertainment, who led the industry in 1999 with gross revenues of $1.15 billion, one of two exclusive distributors for its rental products and one of three exclusive distributors for its sell-through products.
"Ingram Entertainment decided to acquire MVC as part of our strategic initiative to continue improvements in our profitability and performance," Ingram said. "Merging these two companies will create a stronger distribution company going forward."
Ingram said MVC is a well-managed company that embraces a business philosophy and commitment to customer success similar to those at Ingram Entertainment.
"We will adopt the best practices from both companies that will allow us to maintain the strong partnerships and relationships each company has built over the years," Ingram said.
Ingram said he expects to make decisions about integration of operations and locations by the end of the year. MVC will take the Ingram Entertainment name on Jan. 1, 2001.
MVC, which is headquartered in Indianapolis, serves more than 7,100 U.S. retailers and their 13,000 stores. The company employs about 260 people at 11 branch offices and four distribution centers around the country.
MVC had sales of $266 million in 1999, primarily from the video rental business. The company also offers sell-through video, DVD, video games and previously viewed tapes.
"MVC's video distribution has been a great performer for LDI since 1987," said Andre B. Lacy, Chairman of LDI, Ltd. "LDI's strategic planning has been dealing with the long anticipated changes in video distribution. Recent studio marketing decisions accelerated our investigation of strategic alternatives that would take advantage of the valuable human resources the company has developed over the years. Combining MVC operations and Ingram Entertainment is a super opportunity for our associates and best for LDI."
According to Ingram, the customer bases of the two companies are very compatible. Eighty percent of Major Video Concept's video rental accounts are in non-metropolitan markets while Ingram Entertainment's focus is in metropolitan markets.
Product lines at Ingram Entertainment Inc. include prerecorded videocassettes, electronics, video game hardware and software, DVD hardware and software, audio books, accessories, and used prerecorded videocassettes. Ingram Entertainment Inc. has more than 1,000 associates who service more than 10,000 video specialty, mass merchant, drug and supermarket accounts. The company also provides exclusive third-party fulfillment for the Warner Retail Direct program and support services, including direct-to-consumer fulfillment, for Internet retailers.
Ingram Entertainment is headquartered in La Vergne, Tennessee and operates out of 17 U.S. locations. Ingram Entertainment Inc. is also the parent company of Action International Marketing L.P. (microcomputer and electronics wholesaler) and holds a controlling interest in Frank, Best and Ingram (advertising agency).