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McCarthy Group Divests Its 31% Stake in Ballantyne
Ballantyne of Omaha, Inc.has been notified that BalCo Holdings L.L.C., Dana Bradford, Dennis O'Brien, and Scott Schmidt - all affiliates of the McCarthy Group, Inc., an Omaha-based private equity firm with over $400 million invested in companies predominantly located in the Midwest - have divested their collective holdings in the Company totaling 3,917,026 shares, representing an approximate 31% stake.
The shares were sold to an unaffiliated group of private investors pursuant to a registration statement Ballantyne filed with the Securities and Exchange Commission earlier this year on behalf of the sellers. Ballantyne is not issuing any new shares pursuant to, nor will it receive any proceeds from, the transaction. The transaction will not trigger the Company's stockholder rights plan, as no single investor acquired more than a 15% stake, and it does not affect the amount of Ballantyne common stock outstanding, which remains at 12,993,058 shares.
Dana Bradford commented: "Despite the financial challenges facing Ballantyne and its customers at the time of our investment in 2001, we saw value in the Company and its market dominance in the theater projector industry. Since that time we have worked closely with the board and management to establish and implement a number of initiatives aimed at improving shareholder value. Having achieved those initiatives, we've elected to monetize our investment. We're grateful for the opportunity to become involved with Ballantyne and appreciative of the hard work and dedication displayed throughout the ranks of the Company."
"The McCarthy Group became a reliable partner during an unprecedented downturn in the motion picture exhibition industry," added John P. Wilmers, president and chief executive officer of Ballantyne. "We appreciate the stability they brought to our shareholder base as we operated through this challenging period."
Wilmers continued: "Having realigned expenses with revenue, eliminated debt, and returned the Company to revenue and cash flow growth, we are well positioned to expand our market share in a more financially robust motion picture projection industry and participate in the industry's transition from analog to digital cinema. We are also poised to make acquisitions that offer opportunities to expand our customer base, diversify revenues and build shareholder value."
23rd November 2004
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