Village Roadshow Limited
(ASX:VRL) will gain about $6.5 million from divesting a distribution centre in New South Wales.
As a result of the sale the theme show operator expects ongoing earning to annually dip by about $2 million.
The company’s subsidiary, Roadshow Films, has inked a deal to divest the distribution centre to a subsidiary of the Technicolor Group.
Both companies have also entered into a five year deal which will see Technicolor will provide Roadshow with warehouse and distribution services.
The centre currently handles more than 36 million DVDs and other items on behalf of Roadshow and other entertainment companies.
Village Roadshow reported a net profit of $33.8 million in the 2012 financial year.
