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Ballantyne of Omaha Purchases Entertainment Lighting Company
BusinessWire, Thursday, April 10, 1997 at 12:40
OMAHA, Neb.--(BUSINESS WIRE)--April 10, 1997--
Accretive Acquisition More Than Doubles
Spotlight Division Revenue
Ballantyne of Omaha, Inc. (AMEX:BTN), the nation's leading
supplier of motion picture projection and long-range follow spotlight
equipment, today announced it has acquired North Hollywood,
California-based Xenotech, Inc., a leading manufacturer and
distributor of high intensity searchlights and state-of-the-art
lighting systems.
The acquisition marks the first phase of Ballantyne's previously
announced acquisition strategy following last month's appointment of
Ronald H. Echtenkamp as Vice-Chairman to oversee its execution.
Terms of the transaction were not disclosed.
For the fiscal year ended March 31, 1997, Xenotech had revenues
of approximately $3,000,000 and pre-tax income of approximately
$250,000. Ballantyne anticipates the acquisition will be accretive
to earnings in 1997.
Xenotech produces, sells and rents a complete line of stationary
searchlights and computer operated lighting systems for the motion
picture production, television, live entertainment, theme park and
architectural industries. Since its founding in 1986, Xenotech's
specialty lighting products have been used in numerous feature films
including Batman, Terminator I and II and Independence Day.
The Company's products have also been used at live performances
such as the 1993 and 1994 Super Bowl Half Time shows and are
currently illuminating such venues as the Luxor Hotel and Casino and
the Stratosphere Hotel and Casino in Las Vegas, Nevada. Xenotech
markets its products directly to customers in North America, Europe,
South America and along the Pacific Rim.
As part of the transaction, Ballantyne has signed a long-term
employment agreement with Richard Hart, Xenotech's founder and sole
proprietor, whereby Hart will continue directing the Company's
sales and rental efforts from its new facilities in North Hollywood.
Certain previously outsourced Xenotech components will be
manufactured at Ballantyne's recently expanded Omaha, Nebraska plant.
Commenting on the acquisition, Ballantyne President and Chief
Executive Officer John P. Wilmers stated, "Ballantyne has a long
tradition of acquiring complementary product lines with established
sales and distribution channels, enabling the Company to quickly
expand its revenue base, build market share and generate
manufacturing efficiencies. In Xenotech we have found such an ideal
acquisition candidate.
"In many ways, Xenotech is a mirror image of Ballantyne. Its
management is dedicated to superior customer service, its products
enjoy a distinct brand identity in the entertainment industry, its
engineers have built a reputation for designing high-quality,
innovative products and it has built lasting industry relationships
through superior customer service.
"Our goal is to build Xenotech's share of the entertainment
lighting market by leveraging Ballantyne's capital resources,
installed sales base and Hong Kong-based Westrex subsidiary to grow
Xenotech's equipment sales and rental business into a full-service,
global distribution network."
Ballantyne is the leading U.S. manufacturer of commercial motion
picture projection equipment utilized by the major motion picture
exhibition chains including AMC, Cineplex Odeon and Regal Cinemas,
and makes specialized projection equipment used by location-based
entertainment providers such as The Walt Disney Company, Universal
Studios, IMAX and Iwerks, among others. Ballantyne also manufactures
long-range follow spotlights used at top arenas and venues around the
world and commercial foodservice equipment, including pressure fryers
and slow-cook ovens, for convenience store and fast food operators.
Except for the historical information in this press release, it
includes forward-looking statements that involve risks and
uncertainties, including, but not limited to, quarterly fluctuations
in results, the management of growth, and other risks detailed from
time to time in the Company's Securities and Exchange Commission
filings. Actual results may differ materially from management
expectations.
CONTACT: Ballantyne of Omaha, Inc.
Ronald H. Echtenkamp, 402/453-4444
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni/Stewart Lewack, 212/505-3015
jciir@aol.com
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