Accelerating its presence in the global custom home theater market and
its corporate initiative to capitalize on high-value specialty display
products and solutions, Planar Systems, Inc. has announced it has
acquired the assets of privately-held Runco International, Inc. for
$36.7 million in cash. Financing to fund the purchase price consisted
of $14.7 million in existing cash and $22.0 million of borrowing from
the Company’s amended credit facility.
Known worldwide
for producing the world’s finest home theater products, Runco has been
a leading brand in the high-end, custom home theater market for the
past two decades, and has developed some of the industry’s most
advanced home theater solutions, such as CineWide (patent pending)
technology and Video Xtreme projection equipment. Runco currently
delivers outstanding home theater solutions priced from $3,000 to
$250,000, which have consistently won awards for picture quality and
performance. In addition, the Vidikron brand, including the
award-winning Vision Series, has been part of Runco since 2002 after
being founded in 1980.
“This combination offers us an exciting opportunity to accelerate our
reach into the growing global market for high-end home theater
solutions, in line with the strategy we launched last summer,” said
Gerry Perkel, Planar president and chief executive officer. “Runco and
Vidikron are synonymous with excellence in home theater. In combining
Runco’s heritage and industry-leading home theater solutions with
Planar’s global supply chain and broad display technology expertise, we
have assembled some of the best talent in the industry to deliver the
finest home theater solutions to an expanding global marketplace.”
The full range of Planar, Runco and Vidikron custom home theater
offerings include industry-leading home theater projectors, high
performance plasma and LCD thin video displays, ambient-light-rejection
projection screens, as well as video processors and video signal
enhancers designed exclusively for the home theater market. Planar
intends to leverage its expertise in display engineering and
development to expand the product portfolio over time for all three
brands and introduce new custom solutions to its specialty home theater
channels and customers worldwide.
“Our loyal customers and custom dealers will see enhanced Runco and
Vidikron offerings thanks to the tremendous benefits of Planar's global
resources,” said Sam Runco, founder and CEO of Runco International.
“Planar brings substantial capabilities in specialty display technology
beyond the home theater market and well-developed global operations and
supply chain management. Most importantly, Planar has a company
philosophy akin to what Runco has always stood for – excellence in
technology, outstanding quality and service and dedicated focus to its
custom channel partners. I believe this combination can not only
continue the approach to the market that has made Runco a leader, but
it will also create even better products and support to enable our
channel partners expanded success in the market.”
Planar entered the home theater market in 2006 with its innovative
Xscreen technology and front projection offerings. The Company will
continue to sell an expanded line of Planar-branded products through
its exclusive worldwide distribution network. Runco and Vidikron
products will continue to be sold directly to specialized custom home
theater installation dealers, making a one-of-a-kind, and dedicated,
channel focus for all three brands.
Runco was founded in 1987 and recorded net sales as a private company
of $54.6 million in the 12 months ending March 31, 2007, growing
approximately 11 percent in the most recent quarter, compared with the
same period a year ago. Runco employs approximately 120 people, the
majority of whom are based at the company's headquarters in Union City,
California. Planar’s Home Theater business unit, including the Planar,
Runco and Vidikron brands, will continue to be led by Scott Hix, vice
president and general manager reporting directly to Mr. Perkel.
Reporting to Mr. Hix, Bob Hana will continue to lead the Runco and
Vidikron businesses and serve as vice president of worldwide sales and
marketing for these brands. Jim Davis will continue his role as the
worldwide head of sales for Planar-branded specialty home theater
displays, reporting directly to Mr. Hix. Mr. Runco will provide ongoing
consultation and continue to be a key contributor to Planar’s ongoing
Home Theater business initiatives.
Source: Press Release
