Ardustry unit sale finalized

Cheryl Freeman to continue as CEO

Susanne Ault -- Video Business, 4/12/2005

APRIL 12 | Ardustry Home Entertainment officially has announced its acquisition by Hollywood studio veterans Jeff Sagansky and Kerry McCluggage.

Cheryl Freeman remains CEO of the Woodland Hills, Calif.-based company.

Financial terms weren't revealed, but the transaction involved the home entertainment company's sell-off by parent company Ardustry Entertainment, which continues to be owned and operated by business entrepreneur Peter Sahagan. Ardustry Entertainment will continue to create and produce films for distribution through the Ardustry Home Entertainment, officials said.

Launched in August 2002, Ardustry specializes in DVD premiere titles. Later this spring, the company expects to release its first theatrical title, romantic thriller Now and Forever, officials said.

"The rapid progress that Cheryl and her team have made in a mere two years is impressive," said Sagansky, a former top exec of Sony and Paxson Communications. "We want to continue to expand upon this strong business that has been built, enlarge its library as well as explore other avenues of business."

Currently president of film and TV producer Craftsman Films and a former Paramount TV exec, McCluggage said the new owners hope to build Ardustry Home Entertainment into a top independent supplier.

Said Freeman: "We have made tremendous progress in only two years of business. But with Jeff and Kerry's expertise and industry contacts, the company can become even more aggressive in our expansion."