Vitec Group PLC
25 January 2000
Vitec Group plc ('Vitec')
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Vitec Group plc ('Vitec') is pleased to announce the
acquisition, through a wholly owned subsidiary ('the
Purchaser'), of substantially all of the rental assets of
Duke City Video ('Duke City'), a professional video and
audio equipment rental company based in Los Angeles,
California.
The maximum consideration payable is US$12.25 million in
cash. Of the maximum consideration, $2 million was paid on
completion. A further $1.55 million, less any reductions in
purchase price which may be made in relation to rental
assets with customers at completion not subsequently
returned to the Purchaser, Duke City's sales tax liability
in relation to the acquired assets and its indemnities under
the sale and purchase agreement, is payable once such
reductions, if any, have been determined.
The balance of $8.7 million, less the adjustment to the
purchase price in relation to assets missing at completion,
is payable in stages upon confirmation that the Purchaser
has unencumbered title to the acquired assets. The net book
value of the acquired assets was approximately $11.2 million
at completion.
The acquired assets will be operated along with those of
Vitec's video and audio rental companies in the USA. Malcolm
Baggott, Chief Executive, commenting on the acquisition said
'This consolidates our position as the premier rental
company serving major sporting and other events in the USA
and elsewhere in the world'.
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