Vue buys Germany’s CineStar in latest deal
The Vue cinema chain is spending up to 221.8 million euros (£195.4 million) on acquiring Germany’s CineStar in its biggest ever deal.
Vue, which is owned by Canadian funds Alberta Investment Management Corporation and Omers, will take control of 57 sites boasting 449 screens across the country.
It is acquiring the group from Australian Event Hospitality & Entertainment.
It represents Vue’s third expansion this year following deals to acquire Cinema3D in Poland and Showtime Cinemas in Ireland.
Chief executive Tim Richards said: “This acquisition is our third international acquisition this year and further reinforces our commitment to international expansion.
“Germany is an extremely important cinema market and is consistently in the top 10 box office markets in the world.
“The acquisition of CineStar supports our strategic and business objectives of developing and owning the highest quality cinema assets globally. We look forward to further investing in the estate and welcoming CineStar into the Vue Group.”
The deal consists of an upfront payment of 130 million euros (£114.5 million) and the possibility of up to 91.8 million euros (£80.9 million) at a later date. It will be financed from existing cash and through 114 million euros (£100 million) of debt.
It comes as speculation mounts that AIMCo and Omers are looking to float Vue or trim their holdings in the company.