Canada’s largest movie theatre company is being acquired.
Cineplex announced it has entered a definitive agreement with Cineworld Group in a proposed transaction that will “create one of the world’s largest cinema companies.”
The total value of the transaction is about $2.8 billion, according to Cineplex.
“Since Cineplex went public in 2003, we have been committed to delivering value to our shareholders. We believe this transaction today is both financially compelling and in our shareholders best interest,” said Ellis Jacob, President and CEO, Cineplex.
“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
Cineplex stated that the transaction ensures that “Cineplex’s business, particularly its network of 165 movie theatres across Canada, has access to the global opportunities required to compete effectively in an evolving entertainment landscape.”
It added that its support for the Canadian entertainment industry and its partners will continue.
The proposed transaction is expected to close during the first half of 2020.
Cineworld Group was founded in 1995 and through expansion and by acquisition, it has become the second largest cinema chain worldwide.
As of December 2019, Cineworld operated across 786 theatres in the US, UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
It now will add Canada to its list.