Kerner Optical Kerner Optical , known as KernerFX , was the visual effects division of the Kerner Group , based on Kerner Blvd . in San Rafael , California . Kerner was , until 2006 , part of the LucasFilm family as the physical and practical effects division of Lucas ' Industrial Light & Magic ( ILM ) . While KernerFX provided its world - class VFX services to other studios , Kerner also worked on ILM projects including ' s . KernerFX provides industry leading services including model making , creature design and manufacture , and makeup shops ; special effects and pyrotechnics ; property and set construction ; camera engineering and design ; rigging and mechanical effects ; stereoscopic 3D and blue / green screen capabilities ; a research and development department ; and fully operational stages and production facilities for interior and exterior filming . History . When ILM moved its digital effects departments to San Francisco in 2005 , it was determined that the physical production departments would remain in the original San Rafael facilities . ILM ' s former physical production departments ultimately became KernerFX , operating independently of and in conjunction with ILM . KernerFXl finalized its purchase from ILM in 2006 , with the company officially opening for business in August of that year . A consequence of this was that a number of long - time ILM staffers , specialized in creating visual effects using physical assets , moved over to the new company which included among others Robert Hill , Patricia Rose Duignan , Sean Casey , and Steve Gawley . Since separating from the LucasFilm family in 2006 , Kerner has worked on such films as " Pirates of the Caribbean : At World ' s End " ( which featured Lee Arenberg and Greg Ellis ) , " Evan Almighty " ( which starred Jimmy Bennett ) , " Transformers " ( written by Alex Kurtzman and Roberto Orci ) , and Paramount Pictures ' " The Spiderwick Chronicles " and " Indiana Jones and the Kingdom of the Crystal Skull " . More recent films include " Eagle Eye " ( executive produced by Kurtzman and Orci ) , " Harry Potter and the Half - Blood Prince " , " Terminator Salvation " ( starring Anton Yelchin ) , and " Transformers : Revenge of the Fallen " ( again written by Alex Kurtzman and Roberto Orci ) . In August of 2009 Eric Edmeades acquired a controlling interest in the group and assumed the role of CEO , but was forced to close down the company two years later , on 31 August 2011 . Edmeades cited as reasons for the closure a combination of fatal debt accumulation and " disingenuous allegations of mismanagement " that cost the company the confidence of its largest customer , which happened to be ILM . Never been profitable in the first place , this was particularly painful as Edmeades had managed to turn around the fortunes of the company when he took over the reigns of the company in 2009 . Parent company . KernerFX is the VFX division of The Kerner Group which provides a variety of other services including the manufacture of life - like dummies for training military medics , 3D camera rigs , 3D viewing technology and concert walls and software products including FrameFree ; a program that makes user generated 3D content a reality . Lore . When ILM first moved into the San Rafael location over 30 years ago there was a door marked " Kerner Optical . " Lucas opted to leave this sign in place and commented , later , on the KERNER CO sign in front of the property explaining that it was there to keep the fans from snooping through the property and garbage bins . ILM operated as " Kerner Optical " for over thirty years and the new management opted to keep that name as a tribute to ILM ' s legacy .