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Paris-based Thomson, which bought Grass Valley Group in 2002, said Thursday it is divesting itself of the video equipment manufacturer that has been an icon of high-tech potential for western Nevada County.
About 280 people work at the campus in Nevada City’s Seven Hills area.
Thomson’s board of directors approved a move to “divest its nonstrategic operations,” a statement on the company’s Web site said. “These assets, which include Grass Valley and PRN, accounted for approximately $1 billion euros of sales in 2008.”
PRN is a manufacturer of in-store media screens used in more 6,400 retail outlets worldwide.
Grass Valley Group, which was founded by Donald Hare in Nevada County in 1958, manufactures and sells media switchers, routers, servers and editing products from its Providence Mine Road headquarters. The company sells its products to major media companies including NBC Universal.
Thomson also owns the Technicolor brand.
Thomson’s net debt as of Dec. 31, 2008, was 2.1 billion euros, the company statement said. Revenues in the fourth quarter of 2008 fell 8.4 percent compared to the same period in 2007.
“Our new strategic framework is fully customer-centric in order to respond to the current and future challenges of the content industry,” Thomson CEO Frederic Rose said in a letter to employees. ”Strengthening our balance sheet is the precondition for the implementation of this strategic framework.”
Rose’s letter outlined key goals, including identifying customers, being relevant to them, investment opportunities to serve customers and “generat(ing) profitable revenues...
“In this respect, we have decided to launch the process of divesting Grass Valley and PRN,” Rose said.
The letter also indicated Rose was considering a salary and bonus freeze for 2009 and suspension of Thomson’s contributions to employee 401(k) retirement plans for American operations.
“I perfectly understand that I am asking a considerable effort of you all,” Rose added.
Thomson laid off 21 workers in December from its more than 300-person staff in Nevada City.
Thomson Grass Valley managers declined to comment on the move, which was announced to local employees in staff meetings on Thursday.
Employees leaving the complex next to the Nevada City Tech Center said only that meetings were held and that those discussions included the possibility of being sold.
Judith Madden, director of human resources for Thomson Grass Valley, said she was not authorized to speak on matters regarding the parent company’s announcement, and she would not disclose the nature of discussions with employees on Thursday.
Madden directed questions to the company’s headquarters in France. Messages and e-mails for company representatives were not immediately returned Thursday.
Contact staff writer David Mirhadi at 477-4239 or dmirhadi@theunion.com.
About 280 people work at the campus in Nevada City’s Seven Hills area.
Thomson’s board of directors approved a move to “divest its nonstrategic operations,” a statement on the company’s Web site said. “These assets, which include Grass Valley and PRN, accounted for approximately $1 billion euros of sales in 2008.”
PRN is a manufacturer of in-store media screens used in more 6,400 retail outlets worldwide.
Grass Valley Group, which was founded by Donald Hare in Nevada County in 1958, manufactures and sells media switchers, routers, servers and editing products from its Providence Mine Road headquarters. The company sells its products to major media companies including NBC Universal.
Thomson also owns the Technicolor brand.
Thomson’s net debt as of Dec. 31, 2008, was 2.1 billion euros, the company statement said. Revenues in the fourth quarter of 2008 fell 8.4 percent compared to the same period in 2007.
“Our new strategic framework is fully customer-centric in order to respond to the current and future challenges of the content industry,” Thomson CEO Frederic Rose said in a letter to employees. ”Strengthening our balance sheet is the precondition for the implementation of this strategic framework.”
Rose’s letter outlined key goals, including identifying customers, being relevant to them, investment opportunities to serve customers and “generat(ing) profitable revenues...
“In this respect, we have decided to launch the process of divesting Grass Valley and PRN,” Rose said.
The letter also indicated Rose was considering a salary and bonus freeze for 2009 and suspension of Thomson’s contributions to employee 401(k) retirement plans for American operations.
“I perfectly understand that I am asking a considerable effort of you all,” Rose added.
Thomson laid off 21 workers in December from its more than 300-person staff in Nevada City.
Thomson Grass Valley managers declined to comment on the move, which was announced to local employees in staff meetings on Thursday.
Employees leaving the complex next to the Nevada City Tech Center said only that meetings were held and that those discussions included the possibility of being sold.
Judith Madden, director of human resources for Thomson Grass Valley, said she was not authorized to speak on matters regarding the parent company’s announcement, and she would not disclose the nature of discussions with employees on Thursday.
Madden directed questions to the company’s headquarters in France. Messages and e-mails for company representatives were not immediately returned Thursday.
Contact staff writer David Mirhadi at 477-4239 or dmirhadi@theunion.com.
