Matthews to buy Duke City

Matthews Studio Equipment Group has signed a letter of intent to acquire an Albuquerque, N.M., video product company in a cash, stock and debt assumption deal worth $12 million, company officials said Wednesday.

Officials from the Burbank-based supplier of lighting and grip equipment said the acquisition of privately held Duke City Video will significantly increase the company's reach in New Mexico and Texas, as well as expand its operations in Southern California.

Previously, Matthews had agreed to purchase only Duke City's lighting and equipment business, but not its video unit. Duke City prexy Jay Leftkovitz will be in charge of Matthews' new video division.

"The addition of the video equipment rental business to Matthews will complement our current product lines, and the additional technical and marketing expertise currently within Duke City should provide benefit to the entire Matthews group," Matthews chairman and CEO Carlos DeMattos said in a statement.

Matthews stock closed Wednesday at $2.53, up 15.6¢ in Nasdaq trading.