Vancouver: Vancouver-based private equity firm Tricor Pacific Capital has invested more than $40 million in equity and subordinated debt to allow Paul Bronfman to formally consolidate his large, longstanding "partnership" of independent entertainment companies into Comweb Group. Tricor's ownership stake is 17%.

The new deal, announced Sept. 16, means William F. White International, a provider of motion picture and television production equipment, and Entertainment Partners Canada and Bulloch Film Capital Corporation (EP Canada/Bulloch), providers of payroll, accounting and tax-credit financing, become 100%-owned subsidiaries of Comweb Group.

"It is the first time in our 15 years of operation that we have accepted an outside investor," says Bronfman, majority shareholder of Comweb Group, noting that it took that long to find the right financial partner. "We're extremely pleased that this first important step by a Canadian private equity firm was taken with us. It demonstrates to our industry that growth opportunities are still attainable in our sector. It also demonstrates that Comweb continues to head in the right direction, and that our growth potential is a matter of record."

Comweb plans to grow "from the core out," says Bronfman, and will invest in new capital and technologies to maintain its operating goals of providing clients with leading-edge service. About 60% of business is now service production from the U.S. and Bronfman says the transition will be seamless for clients. Division brands will stay the same.

"The Canadian production industry is coming out of a challenging time," says Rod Senft, managing director, Tricor Pacific. "A company such as Comweb Group is a true leader in its field."

Bill White and Mark Prior, the respective presidents of WFW and EP Canada/Bulloch, retain these positions while adding the roles of executive VPs of Comweb. They join Rick Nelson, who was appointed executive VP of Comweb in 2000, and remains based in Comweb's Los Angeles offices. Rohit Bhatt has been appointed Comweb's chief financial officer, while continuing his role as CFO of WFW.

Through WFW, Comweb also operates special effects equipment company Filmair International, lighting supplier Cinequip White and mobile generator company Burrell Generators, and is a partner in Budapest-based Sparks Camera & Lighting.

Comweb's affiliated partners include studio Cine Cite Montreal, producer Protocol Entertainment (Train 48) and Great Lakes Studios Toronto.

-www.comwebgroup.com

-www.tricorpacific.com

-www.bulloch.ca

-www.whites.com

-www.filmairinternational.com

-www.cinequipwhite.com

-www.litepower.com

-www.sparks.hu

-www.cinecitemontreal.com

-www.protocolent.com

By Ian Edwards