Deluxe Entertainment Services Group is to acquire Ascent Media's Creative Services and Media Services businesses in a deal valued at approximately $68 million. The transaction, that brings together two of the world’s largest post-production facilities, is expected to be closed by the end of the year.

Included in the acquisition is Ascent’s brands Company 3, Beast, Method, Encore Hollywood and Level 3 Post in Los Angeles, and Rushes and Ascent 142 in London. Seventy-nine percent of the purchase price has been allocated to the US businesses and 21% to the UK businesses.

The acquisition will enhance Deluxe’s services for clients that include life-cycle library management and digital asset management. Digital services include file-based mastering, archiving, digital distribution, DVD and Blu-ray authoring. Deluxe is the world’s largest processor of film for the motion picture industry and the industry’s largest provider of Blu-ray authoring services.

In business for 95 years, Deluxe is currently owned by MacAndrews and Forbes Holdings, led by businessman Ron Perelman.

With a staff of 1,800, Ascent Media Group’s Creative Services business unit provides high-end post-production services for feature film, advertising and entertainment television clients.

Ascent Media will continue to own the Group’s content distribution and systems integration businesses. However, the company says it is pursuing “strategic alternatives” for both business units. Furthermore, it is committed to pursuing “investments in or the acquisition of businesses that provide enhanced shareholder return opportunities.”

Story filed 25.11.10