Kinepolis Group NV (EBR: KIN) has completed the acquisition of Landmark Cinemas Canada LP from TriWest Capital Partners and Landmark management shareholders. The acquisition has an enterprise value of CDN $122.7 million or €84.2 million.
Initially announced in September 2017, the acquisition closed today following the approval by the Minister of Canadian Heritage, The Honourable Mélanie Joly, on December 7, 2017.
Kinepolis will manage the Canadian company, which employs 1,450 people, through a local executive management board made up of the current Landmark Cinemas management and supported by an integration team that will facilitate the integration and adapt Kinepolis’ strategy for the Canadian market.
With the completion of the acquisition, Neil Campbell, presently CEO Landmark Cinemas will transition to the role of Vice Chairman, and Bill Walker, presently the company’s COO will assume the position of CEO, Landmark Cinemas.
Calgary based Landmark Cinemas operates 44 movie theatres of various sizes, all located in Central and Western Canada. The 44 Landmark Cinemas movie theatres, with a total of 55,000 seats and 303 screens, realized CDN $156.3 million turnover in 2016 with 10.2 million visitors. The company is Canada’s second largest cinema operator, with a market share of 10%.
The acquisition fits in with the expansion strategy pursued by Kinepolis and enables the Group to enter a new market which is characterized by healthy macroeconomic prospects, a growing population and a favourable business climate. Entering a new continent creates geographic diversification of Kinepolis’ business activities and provides new growth opportunities through acquisitions and new-build projects.
The agreement with Landmark Cinemas already includes two new-build recliner projects in St. Albert and Fort McMurray, Alberta. It also includes plans for more new-build movie theatres.
In November 2013, TriWest Capital Partners, along with senior management, acquired a majority of Landmark Cinemas as part of Landmark’s acquisition of 22 theatres in Ontario, Manitoba, Alberta and BC from Empire Theatres.
photo credit: Landmark Cinemas