Cineworld to buy Canadian operator for $2.1bn
Cineworld has agreed to buy Canadian operator Cineplex for $2.1bn, the company announced this morning.
The deal, which will add 165 cinemas and 1,695 screens to Cineworld’s portfolio, is subject to shareholder approval and is expected to complete in the first half of next year.
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Cineworld said the acquisition, which values Cineplex at C$34 per share, will create annual pre-tax combination benefits of $130m by the end of 2021.
The cinema chain’s largest shareholder Global City Theatres, which holds an approximate 28 per cent stake, has agreed to vote in favour of the acquisition.
Mooky Greidinger, chief executive of Cineworld, said: “Cineplex is a great business. It is the number one cinema operator in Canada and is well positioned for further growth.
The combination of Cineplex and Regal will create the leading North American cinema operator with unrivalled scale and opportunity. By deploying our operational best practices, we expect the transaction to create compelling value for shareholders and to be strongly EPS and free cash flow accretive.
“The acquisition of Cineplex strengthens our belief in the theatrical business, one of the most affordable out-of-home forms of entertainment.
We constantly strive to provide the best customer experience and maintain technological leadership and we are excited about Cineworld’s prospects for 2020 and beyond as we look to complete the Cineplex transaction, our US refurbishment programme and the roll-out of Unlimited, and we look forward to the great selection of movies to come.”