News





Regal Entertainment to Acquire Hollywood Theaters in $238 Million Deal

Feb 19, 2013

-By Georg Szalai


Movie-exhibition giant Regal Entertainment Group has agreed to acquire Hollywood Theaters in a deal worth around $238 million.

The deal will add 43 theaters with 513 screens to Regal’s portfolio. The theaters are located in 16 U.S. states and three U.S. territories.

With 6,880 screens in 540 locations, Regal is already the largest U.S. exhibition circuit. The purchase price consists of $191 million in cash, about $47 million in assumed lease obligations and "certain working capital," the company said without providing further details.
The cash portion includes repayment of approximately $157 million in debt held by the sellers.

“We expect the acquisition of Hollywood Theaters to be accretive to cash flows and earnings and are pleased to announce an agreement to purchase these high-quality assets,” said Regal CEO Amy Miles. “Accretive acquisitions are a key component of our overall business strategy and we look forward to a successful closing and integration of the Hollywood Theater assets during the second quarter."

Hollywood Theaters chairman and CEO Scott Wallace founded Wallace Theater Corp. in 1991 and acquired Hollywood Theaters in 1999.

"Regal Continues Industry Consolidation Trends with Accretive Deal and Solid Use of Cheap Capital," said B. Riley Caris analyst Eric Wold in the title of his first note following the deal news.

"This move represents a solid use of the inexpensive capital availability and reinforces the main rationale behind our upgrade to "buy" from "neutral" on Dec. 19 at $13.80," he wrote. "We continue to believe that Regal is well-positioned to once again generate results above expectations in 2013 driven by its leading industry position on a robust film slate (with higher 3D penetration) along with a well-capitalized balance sheet to take advantage of additional M&A opportunities"

He reiterated his rating and $17.50 price target on Regal's stock.
-The Hollywood Reporter


Regal Entertainment to Acquire Hollywood Theaters in $238 Million Deal

Feb 19, 2013

-By Georg Szalai


Movie-exhibition giant Regal Entertainment Group has agreed to acquire Hollywood Theaters in a deal worth around $238 million.

The deal will add 43 theaters with 513 screens to Regal’s portfolio. The theaters are located in 16 U.S. states and three U.S. territories.

With 6,880 screens in 540 locations, Regal is already the largest U.S. exhibition circuit. The purchase price consists of $191 million in cash, about $47 million in assumed lease obligations and "certain working capital," the company said without providing further details.
The cash portion includes repayment of approximately $157 million in debt held by the sellers.

“We expect the acquisition of Hollywood Theaters to be accretive to cash flows and earnings and are pleased to announce an agreement to purchase these high-quality assets,” said Regal CEO Amy Miles. “Accretive acquisitions are a key component of our overall business strategy and we look forward to a successful closing and integration of the Hollywood Theater assets during the second quarter."

Hollywood Theaters chairman and CEO Scott Wallace founded Wallace Theater Corp. in 1991 and acquired Hollywood Theaters in 1999.

"Regal Continues Industry Consolidation Trends with Accretive Deal and Solid Use of Cheap Capital," said B. Riley Caris analyst Eric Wold in the title of his first note following the deal news.

"This move represents a solid use of the inexpensive capital availability and reinforces the main rationale behind our upgrade to "buy" from "neutral" on Dec. 19 at $13.80," he wrote. "We continue to believe that Regal is well-positioned to once again generate results above expectations in 2013 driven by its leading industry position on a robust film slate (with higher 3D penetration) along with a well-capitalized balance sheet to take advantage of additional M&A opportunities"

He reiterated his rating and $17.50 price target on Regal's stock.
-The Hollywood Reporter

More Cinemas

Theatres get close to closed captioning with NATO recommendations

The National Association of Theatre Owners (NATO) has joined forces with several major deaf and hard of hearing advocacy organizations to jointly file recommendations to the U.S. Department of Justice (DOJ) for the implementation of increased closed captioning in movie theatres. More »

NCM's 'FirstLook' is now Shazamable

Shazam and National CineMedia announced the full national rollout of their exclusive deal More »

Seattle Cinerama unveils state-of-the-art renovation

Seattle’s Cinerama has been upgraded with state-of-the-art sight and sound More »

NCM and Screenvision respond to Justice Department action

National CineMedia, Inc. and Screenvision, LLC defended their proposed merger in response to a complaint filed by the U.S. Department of Justice More »

ADVERTISEMENT



REVIEWS

imitation game
Film Review: The Imitation Game

Terrific biopic about world-class mathematician and social misfit Alan Turing, who, in spite of a painful struggle with his homosexuality, helped the Allies break the code of the Nazis' Enigma machine. More »

Hunger Games - Mockingjay Pt 1
Film Review: The Hunger Games: Mockingjay - Part 1

Darker, less action-packed first half of the final installment of the popular franchise moves from arenas to rubble aplenty as Jennifer Lawrence’s super-heroine is called upon to serve her beleaguered and much-destroyed nation as propaganda instrument and leader. Fans of the books and previous two films get a less flashy palette here, but the engaging characters and strong story return to stir interest for the scheduled November 2015 finale. More »

Player for the Film Journal International website.


ADVERTISEMENT



INDUSTRY GUIDES

» Blue Sheets
FJI's guide to upcoming movie releases, including films in production and development. Check back weekly for the latest additions.

» Distribution Guide
» Equipment Guide
» Exhibition Guide

ORDER A PRINT SUBSCRIPTION

Film Journal International

Subscribe to the monthly print edition of Film Journal International and get the full visual impact of this valuable resource for the cinema business.

» Click Here

SPONSORSHIP OPPORTUNITIES

Learn how to promote your company at the Film Expo Group events: ShowEast, CineEurope, and CineAsia.

» Click Here