Kinepolis Group has completed the acquisition of American movie theatre chain MJR Digital Cinemas.
Kinepolis reached agreement on the acquisition at the beginning of last month, but it was subject to American regulatory approvals. The approval has been obtained and allows Kinepolis to successfully complete the takeover process.
MJR Digital Cinemas, which is privately held and headquartered in Bloomfield Hills, Michigan, operates 10 movie theater complexes with a total of 164 screens and a seating capacity of over 20,000, all located in Michigan. All movie theaters are multi- and megaplexes with a capacity varying from 10 to 20 screens. In 2018, the 10 theaters drew 6.2 million visitors with total revenue of US$81.2 million.
Seven locations are owned (114 screens), including three on a leasehold site; the remaining three are rented complexes (totaling 50 screens). The chain has three megaplexes with 20 screens each, five with 16 screens, one with 14 screens, and one with 10 screens. All screens have 5.1 digital surround sound and two complexes feature an “EPIC Experience” auditorium combining 4K projection with Dolby Atmos sound. Nearly all theaters are equipped with motorized, fully reclinable seats.
Eddy Duquenne, CEO of Kinepolis Group, said, “I’m very proud we have the opportunity to expand our investment in Canada to the U.S. The successful acquisition of Landmark Cinemas Canada shows we can successfully implement our corporate strategy in another continent and another time zone. The acquisition of MJR fits perfectly into our expansion strategy: geographically, it adjoins Canada; the movie theaters are all multi- or megaplexes, and we also acquire an important real estate position. I’m particularly enthusiastic about the eagerness of the current MJR team to implement Kinepolis’s management vision and customer concepts at the MJR cinemas.”
The acquisition represents an enterprise value of US$152.25 million, which, at an exchange rate of 1.11, equates to an acquisition price of around €137.2 million. The acquisition includes a substantial corporation tax value of over US$13 million, the company said
Kinepolis will continue to operate MJR under the existing brand name. The movie theater chain, which employs 815 people, will continue to be managed by current management, which, for the integration, will be supported by the European Kinepolis team and by the Canadian Landmark team.