Independent home entertainment distributor Image Entertainment has been acquired by an investment firm headed by film financier and producer David Bergstein for $132 million. Stockholders in Chatsworth-based Image receive $4.40 per share in cash from the deal with BTP Acquisition Co., LLC. The Image board of directors unanimously approved the merger agreement and recommended that Image stockholders vote in favor of the transaction. The transaction is expected to close by July 31. As part of the deal, BTP Acquisition assumes a replication advance in excess of $9 million and the repayment of approximately $24 million in debt. Bergstein recently purchased U.K.-based Capitol Films, an international film distributor, and Thinkfilm, a North American film distributor. Founded in 1981 to distribute laserdiscs, Image transitioned to other media formats and built itself into a distributor, producer and independent licensee with more than 3,000 executive DVD titles and 200 exclusive CD titles brining in revenues in excess of $100 million. Last year the company inked a deal with Relativity Media to release feature film titles on all home video and digital formats. Image’s independence, however, has been threatened for 18 months, ever since rival distributor Lionsgate Entertainment attempted to acquire the company in the fall of 2005 that resulted in rejection by the Image board. Lionsgate holds 19 percent of Image stock. In October, Image survived an attempt by Lionsgate to pack its board of director with members of its choosing. At the company’s annual meeting stockholders re-elected the sitting board members.
