logo-loader
viewCineworld Group plc

Cineworld to become North America's top operator after US$2.1bn Cineplex deal

Synergies from the combination are expected to be in the order of US$130mln a year, while the transaction will also enhance earnings and cash flow by double digits in the first full year after acquisition

Cineworld Group plc -

Cineworld PLC (LON:CINE) is swooping for Canada’s largest cinema chain in a deal that would almost double its size and put the group on the cusp of the FTSE 100.

The debt-financed acquisition places an enterprise value (equity value plus debt) of US$2.1bn on Cineplex Inc, owner of 1,695 screens.

The deal, which would make the UK group North America’s largest operator, has the support of Cineworld’s board and, crucially, its 28% shareholder, Global City Theatres.

Synergies from the combination are expected to be in the order of US$130mln a year, while the transaction will also enhance earnings and cash flow by double digits in the first full year after acquisition.

In March last year Cineworld completed the transformational US$3.4bn purchase of Regal Entertainment Group to catapult up to number two in the world rankings.

"The board of Cineworld believes that the acquisition of Cineplex is in the interests of its shareholders as it fits squarely within our strategic acquisition objectives and is expected to be strongly earnings and cash flow accretive,” said Anthony Bloom, Cineworld’s chairman.

Chief executive Mooky Greidinger called Cineplex a “great business” that was “well-positioned for future growth”.

“The combination of Cineplex and Regal will create the leading North American cinema operator with unrivaled scale and opportunity,” he added.

“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.”

Quick facts: Cineworld Group plc

Price: 190.5 GBX

AIM:CINE
Market: AIM
Market Cap: £26.14 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Revenue guidance from OptiBiotix as it eyes NASDAQ listing

OptiBiotix Health (LON:OPTI) provides a commercial progress update, explaining why in their financials some items are separated. CEO Stephen O'Hara tells Proactive London what's behind his thinking adding that Optibiotix hopes to reach profitability in 2020. News here too on Sweetbiotix and...

8 hours, 18 minutes ago

RNS

Holding(s) in Company

5 hours, 25 minutes ago

Director/PDMR Shareholding

5 hours, 54 minutes ago

Director/PDMR Shareholding

3 weeks, 3 days ago

Director/PDMR Shareholding

4 weeks, 1 day ago

Holding(s) in Company

4 weeks, 2 days ago

Trading Statement

on 3/12/19

2 min read