Toronto, ON, (TSX: CGX), March 10, 2017 – Today, Cineplex announced that it is acquiring all of the assets of Dandy Amusements International, Inc. (“Dandy”). Upon completion of the transaction, which is anticipated to take place in April 2017, Dandy will become part of Cineplex’s Player One Amusement Group (“Player One”). Financial terms were not disclosed.
“With Player One, we remain focused on scaling our US operations through new and existing customer development, segment expansion and strategic mergers and acquisitions like this one,” said Ellis Jacob, President and CEO, Cineplex. “Dandy is well-known in the industry as a leading amusement gaming machine operator in the western United States and we are pleased to have them join our rapidly growing Amusement Solutions business. Today’s announcement further strengthens our ability to service customers on a truly North American scale.”
Dandy operates within the coin-operated, route operations amusement equipment segment, predominantly in the western United States, including California, Arizona, Washington and Texas. Based in Simi Valley, California, the company has a concentrated and loyal client portfolio focusing primarily on the theatrical exhibition vertical, offering a mix of equipment that is consistent with Player One’s existing product portfolio. The acquisition reinforces Player One’s already strong US market position by adding over 50 employees to the team, including John Lemieux who has been with Dandy for 25 years and who will now lead western operations for Player One.
“I am very pleased to be selling my business to a company that is so committed to the amusement gaming industry as I believe they will take it to a new level of excellence,” said Ed Pellegrini, Founder and Owner, Dandy Amusements International Inc.
“Under John’s leadership, Dandy’s offices and warehouse in California will act as the base of operations for our expansion in the west,” said Joe McCullagh, Vice President and General Manager, Player One Amusement Group. “The addition of Dandy to our rapidly growing business in the US better positions us for continued growth and enhances our ability to provide amusement services to a much broader and expanded market across North America.”
Headquartered in Toronto, Ontario, Player One Amusement Group employs over 450 people in 21 offices throughout Canada and the United States. One of North America’s leading providers of interactive video, redemption and amusement gaming equipment, it specializes in solution servicing and design for a wide range of customers in the theatrical exhibition vertical as well as community-based entertainment destinations such as bowling centres, restaurants, arcades, shopping centres and water parks.
With pro forma revenue of approximately $15.0 million USD and pro forma adjusted EBITDA of approximately $3.2 million USD, the Dandy acquisition will be financed with cash-on-hand and existing credit facilities.