CPE News (11.22.2023) – OpenGate Capital has signed a definitive agreement with Cineplex Inc. (TSX: CGX) to acquire their Player One Amusement Group (P1AG or Player One) division.
OpenGate will acquire all issued and outstanding common shares of Player One for a total transaction value of CDN $155 million, subject to certain closing adjustments.
Closing is expected to occur in early 2024 subject to customary closing conditions.
Player One is an amusement services provider based in Toronto, Ontario serving customers across Canada and the US. The business provides amusement gaming equipment and outsourced operations and maintenance support to customers seeking to drive superior location profitability and create a best-in-class consumer experience. In addition, the business sources, distributes, and maintains amusement gaming equipment for commercial and retail venues across North America.
Player One serves approximately 2,400 customer locations and manages more than 20,000 equipment assets across North America.
In February, 2012, Cineplex formed Cineplex Starburst Inc. (CSI), a 50/50 joint venture with Starburst Coin Machines Inc., one of the largest distributors and suppliers of arcade games to the amusement industry in Canada.
On October 1, 2015, Cineplex completed the acquisition of the remaining 50% of issued and outstanding equity of CSI that it did not already own, for approximately $21.0 million.
IN February 2015, CSI had entered into a new venture with Brady Distributing Company, of which CSI owned 80%, creating Brady Starburst LLC, one of North America’s largest distributors of amusement and vending equipment, expanding CSI’s presence in the U.S. On March 1, 2016, CSI acquired the remaining 20% interest in BSL. Subsequently, CSI was renamed to Player One Amusement Group Inc.
In 2016, Player One acquired Tricorp Amusements, Inc. of New Jersey, a leading provider of interactive video, redemption and amusement gaming services; the operating assets of SAW, LLC of Florida, a leading provider of coin operated rides, amusement and redemption games as well as bulk-vending equipment. Player One acquired Dandy Amusements Inc. in 2017.
“Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market,” said Andrew Nikou, OpenGate Capital’s Founder and Managing Partner. “As corporate carve-out specialists, we are ready to bring the full force of our operations team to support the business and management team in this next stage of growth.”
photo credit: Player One
News Release
OpenGate Capital Signs Definitive Agreement to Acquire Player One Amusement Group Inc.
Transaction Represents Carve-out of North American Amusement Solutions Business
November 22, 2023 08:40 AM Eastern Standard Time
LOS ANGELES–(BUSINESS WIRE)–OpenGate Capital, a global private equity firm, announced today that it has signed a definitive agreement with Cineplex, Canada’s leading entertainment and media company, to acquire their Player One Amusement Group (“P1AG” or “Player One”) division. OpenGate will acquire all issued and outstanding common shares of P1AG for a total transaction value of CAD $155 million, subject to certain closing adjustments. Closing is expected to occur in early 2024 subject to customary closing conditions.
P1AG is an amusement services provider based in Toronto, Ontario serving customers across Canada and the US. The business provides amusement gaming equipment and outsourced operations and maintenance support to customers seeking to drive superior location profitability and create a best-in-class consumer experience. In addition, the business sources, distributes, and maintains amusement gaming equipment for commercial and retail venues across North America. Customers include theater chains, family entertainment centers, and other amusement operators including bowling centers, resorts, restaurants, and trampoline parks.
“Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market,” said Andrew Nikou, OpenGate Capital’s Founder and Managing Partner. “As corporate carve-out specialists, we are ready to bring the full force of our operations team to support the business and management team in this next stage of growth.”
P1AG serves approximately 2,400 customer locations and manages more than 20,000 equipment assets across North America.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build, and scale successful businesses. To date, OpenGate Capital has executed more than 40 platform acquisitions across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
Contacts
OpenGate Media Contacts
Prosek Partners
Email: Pro-opengate@prosek.com
Alanna Chaffin
Head of Investor Relations & Communications
Email: AChaffin@opengatecapital.com
Telephone: +1 310-432-7000
OpenGate Business Development Contact
Joshua Adams
Email: jadams@opengatecapital.com