Cineworld Group to buy Cineplex
Toronto-based theatre chain Cineplex Entertainment has signed an agreement to be acquired by Cineworld Group of Brentford, UK. Under the terms of the deal, Cineworld will acquire all outstanding common shares of Cineplex for $34 each, or approximately $2.8 billion in total plus the assumption of debt. The transaction, which remains subject to shareholder approval, is expected to close in the first half of 2020. Cineplex operates 165 movie theatres in Canada. Cineworld operates 9,498 screens at 786 theatres in the US, UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
“Since Cineplex went public in 2003, we have been committed to delivering value to our shareholders,” said Ellis Jacob, president and CEO of Cineplex. “We believe this transaction today is both financially compelling and in our shareholders best interest. Cineworld Group shares our passion for entertainment and mirrors our commitment to delivering exceptional guest experiences through state-of-the-art technology. The entertainment industry continues to transform and we are pleased that through this agreement we are ensuring Cineplex is part of the next era of global entertainment.”