Planar Acquires Runco
BEAVERTON, Ore., May 23, 2007 -- Planar Systems Inc., a digital display maker based in Beaverton, Ore., announced today it has acquired Runco International Inc., a provider of home-theater equipment, 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.
Runco, founded in 1987, developed CineWide technology and makes Video Xtreme projection equipment. It also carries the Vidikron brand, including the Vision series. The company has about 120 employees, most of whom work at its Union City, Calif., headquarters. It recorded net sales as a private company of $54.6 million in the 12 months ending March 31 growing approximately 11 percent in the most recent quarter, compared with the same period a year ago.
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. 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. Sam Runco, founder and CEO of Runco International, will consult and contribute to Planar's home-theater business initiatives.
Planar said it expects the transaction to be slightly dilutive to Planar's most recently disclosed Non-GAAP earnings expectations through the balance of fiscal 2007 and that it will be accretive to Non-GAAP earnings per share for the full fiscal 2008.
"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," Perkel said.
Planar makes display hardware and software for a variety of specialty display markets. It entered the home theater market in 2006 with its Xscreen technology and front-projection products. It said it will continue to sell an expanded line of Planar-branded products and that Runco and Vidikron products will continue to be sold directly to custom home-theater installation dealers.
For more information, visit: www.planar.com