Toronto, ON, (TSX: CGX), September 21, 2016 – Cineplex Entertainment (“Cineplex”) today announced that it is acquiring all of the issued and outstanding shares of Tricorp Amusements Inc. (“Tricorp”). Upon completion of the transaction, which is expected to close in early October, New Jersey-based Tricorp will become part of Cineplex Starburst Inc. (“CSI”), a wholly owned and operated subsidiary of Cineplex Entertainment. Financial terms were not disclosed.
“With Premier Amusements as well as through strategic mergers and acquisitions like Brady Starburst last year, CSI has become one of the leading distributors and operators of amusement and gaming equipment across North America,” said Ellis Jacob, President and CEO of Cineplex Entertainment. “The acquisition of Tricorp enables CSI to further scale its US presence and create opportunities for significant growth.”
Tricorp is a leading provider of interactive video, redemption and amusement gaming services through revenue sharing agreements in the United States. It has a diversified client portfolio focusing on the theatrical exhibition vertical as well as community-based family entertainment destinations such as bowling centres, amusement and water parks, indoor mini-golf and laser tag facilities, as well as casinos and restaurants. It also specializes in entertainment centre design and has over 35 years of experience in delivering high quality entertainment programing and attraction selection.
“This transaction with Cineplex is exciting because it will allow for greater scale in our existing business channel and provide for even more opportunities for the entire Tricorp team,” said Charles T. Peitz, Founder and Chief Executive Officer, Tricorp Amusements Inc. “Combining our two organizations creates a powerful, strong and diverse amusement company that can now provide amusement services to a much broader and expanded market across North America.”
Headquartered in Toronto, Ontario, CSI has 16 offices across Canada and the United States operating as Cineplex Starburst, Brady Starburst, Premier Amusements and Playdium. The acquisition announced today strengthens CSI’s already strong US market position by adding nearly 100 Tricorp employees covering over 20 states from five regional distribution centres across the eastern seaboard. The Tricorp corporate offices will remain in New Jersey and the executive management team will continue to be led by industry veterans Charles ‘Chuck’ Peitz and Joe Ingui.
With pro forma revenues of approximately $28.0 million USD and pro forma adjusted EBITDA of approximately $6.0 million USD, the Tricorp acquisition will be financed with cash-on-hand and existing credit facilities.