Matthews Studio to Buy Hollywood Rental Co.

Matthews Studio Equipment Group of Burbank announced signing a letter of intent to acquire Hollywood Rental Co. and its subsidiary, Expendable Supply Store of Sun Valley, through an exchange of stock.

Under terms of the tentative agreement, Matthews, which makes and sells lighting accessories and camera equipment for the motion picture industry, will acquire all of Hollywood Rental’s stock in exchange for about 10% of its own stock, said Greg Moiseeff, Matthews’s counsel and executive vice president. Hollywood Rental rents and sells film production equipment and office supplies to film makers.

Matthews said the revenue of the combined firms would be $15 million in the current fiscal year. In its latest fiscal year that ended Sept. 30, Matthews had sales of $8.3 million and a profit of $223,000.