Cinram Retains Adviser To Study Strategic Options

The Canadian replicator, impacted by the DVD and video games slump, has hired Moelis & Company evaluate its options.

TORONTO - Canadian replicator Cinram International Income Fund, a key industry barometer for DVD and Blu-Ray sales, has retained a strategic adviser to consider its options.

Toronto-based Cinram makes and distributes packaged media for the major studios, and has been heavily impacted as video game and DVD sales suffer due to industry softness and a shift of entertainment content to digital platforms.

So the Canadian company late Thursday said it has hired investment bank Moelis & Company “to undertake a comprehensive and thorough review of the strategic alternatives for the fund.”

Cinram did not specify whether putting itself up for sale is in the cards, and gave no assurance that a “specific action or transaction” will follow.

But the replicator added it will not talk publicly about its evaluation of strategic alternatives “unless and until the board of trustees approves a transaction.”

Cinram in recent years has struggled for new business after losing a key contract to Technicolor to replicate and distribute DVD and Blu-ray discs for Warner Bros. Video.

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