Runco Now Has Fancy Colors On The Outside Too!

In case buying a high end projector or flat panel wasn't spendy enough, high end maker Runco seeks to woo style conscious clients. That's pretty damn cool!

Marketnews: Runco Can Colour-Match Projector/ LCD/Plasma Cases For Any Room

For the uninitiated, color matching is serious business, and integrators need to be totally on board with the client's interior designer, instead of getting on like cats and dogs, as is often the case.

To underscore the importance of color I was once working in a client's home while they went off on their cell phone at the bath fixture supplier. The client had specified antiqued oil-washed bronze and the supplier shipped plain old oil-washed bronze.

When it comes to designer colors, those extra adjectives are important!

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Rumors about Planar true: Vidikron is toast

I reported earlier on the rumours swirling that Planar was going to roll up the Vidikron banner. Now it's confirmed.

CE Pro: Runco Phases out Vidikron Brand, Reveals Opal Technology

Runco is phasing out its step-down Vidikron brand. The new "focus, focus, focus is Runco, Runco, Runco," says Andrew Ard of KA Marketing, an independent rep for Runco."We've decided to realign our business focus so the center of our business is Runco," says Gerry Perkel, CEO of Planar, the parent company of Runco. "Runco is the key brand, Runco is the key product portfolio. ..."

It's probably for the best, really.

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Additional bloggotage on the Runco/Planar deal

CE Pro has some good points today following up on Planar's purchase of Runco that I discussed yesterday.

CE Pro: Planar's Acquisition of Runco: No End to the Party

Notably, there's some concern from commenters that this will have a negative impact on Runco's distribution, and service to high-end dealers.

Looks like the big loser here will be any dealer selling Vidikron. That brand was always confused, like an ugly step-sister. Now, with new parents, it looks like Vidikron will vulnerable and Planar will be the mass-market brand. Runco will always stand for high end, not PC monitors. I'd be worried, too, about the long-term branding commitment of an industrial display company with executives who used to work for business projector and a PC printer companies. I give it 18 months before you see "CineWide at AVAD".

And as I commented on their page:

Additionally, digging into PLNR's fundamentals as I was earlier, they seem to be adrift, and lacking real focus or direction. I hope the aquisition of Runco is a kickstart that puts them back onto a winning path, as opposed to being a costly distraction from their main business.

Time will tell if Planar can maintain Runco's winning formula, or if the message will get lost. It would be a shame if that happened.

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Runco sold to Planar for an oddly small bag of loot

I would have commented on this earlier, but last night was my 8th wedding anniversary. I'm actually quite happy about that so I didn't feel compelled to sit in front of a computer, as you might imagine.

Regardless, luminary projector magnate Sam Runco has sold his baby off to Planar, a manufacturer of primarily industrial display devices. You can read the entire press release here, but I've encapsulated the good bits:

BEAVERTON, Ore., May 23, 2007 (BUSINESS WIRE) -- Accelerating its presence in the global custom home theater market and its corporate initiative to capitalize on high-value specialty display products and solutions, Planar Systems, Inc. (NASDAQ:PLNR) today announced it has acquired the assets of privately-held Runco International, Inc. for $36.7 million in cash. Financing to fund the purchase price consisted of $14.7 million in existing cash and $22.0 million of borrowing from the Company's amended credit facility.

...

Runco was founded in 1987 and recorded net sales as a private company of $54.6 million in the 12 months ending March 31, 2007, growing approximately 11 percent in the most recent quarter, compared with the same period a year ago. Runco employs approximately 120 people, the majority of whom are based at the company's headquarters in Union City, California. Planar's Home Theater business unit, including the Planar, Runco and Vidikron brands, will continue to be led by Scott Hix.

Now, I'm currently waiting on confirmation from sources as to whether that $54.6 million in revenue includes Vidikron's numbers, or just the Runco brand. Regardless, buying a $54.6 million (possibly $54.6 +) company for $36.7 million tells me that either Planar got a squeal of a deal, or Sam Runco knows something that they don't and he's laughing into his bellinis. My sources can't confirm that whether or not he likes drinking bellinis, but that seems like an appropriate celebratory beverage.

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