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

CineAsia to honor Major Cineplex's Vicha Poolvarluk

Vicha Poolvarluk, chairman of Major Cineplex Group, will receive the 2014 “Exhibitor of the Year” Award at CineAsia More »

Event cinema nominations are announced

The Event Cinema Association announced the nominations for its second annual ECA Awards More »

Australian International Movie Convention announces diverse program

The 69th Australian International Movie Convention will be held Oct. 12-16 at Jupiters Hotel & Casino More »

CineAsia 2014 to honor Indonesian film producer Maya Barack-Evans

Film producer and anti-piracy campaigner Maya Barack-Evans will be honored with the Asia-Pacific Copyright Educator (ACE) Award at CineAsia 2014. More »

ADVERTISEMENT



REVIEWS

The Equalizer Review
Film Review: The Equalizer

Former agent is drawn out of hiding to fight a Russian gang in a reboot of the 1980s television series. More »

The Boxtrolls
Film Review: The Boxtrolls

Another amazingly meticulous and stylish stop-motion tale from the Laika studio, this time focusing on a boy adopted by a population of maligned underground trolls. 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