Deluxe Entertainment has sold the distribution side of its business to Platinum Equity, owned by billionaire Tom Gores.
Deluxe will retain its creative businesses, which are not included in the acquisition. Financial details of the deal have not been disclosed.
Former Deluxe CEO Cyril Drabinsky, who left the company in 2016 to found CineVizion, is returning to lead the business as CEO under Platinum Equity’s ownership. As part of the transition, CineVizion’s assets will be integrated into Deluxe.
“The entertainment industry, like many others, has been seriously disrupted by the coronavirus crisis,” said Tom Gores, chairman and CEO of Platinum Equity. “It will take both experience and tenacity to make it through to the other side, but we are confident that good companies with strong fundamentals and capable leadership will not only survive this crisis, but thrive.”
“Deluxe has been a cornerstone of the entertainment industry for more than 100 years,” Gores added. “The company drove the evolution of digital cinema distribution and has continued to reinvent itself in partnership with content creators around the world. At this pivotal time for the industry, Cyril’s leadership, combined with Platinum’s financial resources and operational expertise, will help the company move forward stronger than ever. This is the first of several things to come in this space.”
Former Deluxe executive Mike Gunter is joining Drabinsky’s leadership team as chief financial officer. Warren Stein, who served as COO of Deluxe until 2016, is also returning in the same tole. Former Deluxe president of post production William Sherak advised Platinum Equity on the acquisition and will remain in an advisory role with the company going forward.