Kinepolis is taking over the Dutch Wolff cinema group. Thus Kinepolis acquires nine existing cinemas in the Netherlands, more specifically in Huizen, Groningen, Enschede (two establishments), Rotterdam, Nieuwegein and Utrecht (three establishments), as well as two new construction projects for a megaplex in Utrecht and a multiplex in Dordrecht. The Wolff group not only manages cinemas, but is also a programmer and purchasing centre for other cinemas. These activities are taken over by Kinepolis as well. Moreover, as part of its expansion plans, Kinepolis is also developing its own project for the construction of a multiplex cinema in the Netherlands.
With the takeover of the Dutch Wolff cinema group, Kinepolis expands geographically by adding a new country to its existing portfolio of cinemas in Belgium, France, Spain, Switzerland and Poland. The acquisition fits in with Kinepolis group's expansion strategy to offer its movie experience concepts to a wider public and thereby create value for its shareholders.
In 2013, the Wolff cinemas in operation today, attracted almost 1.6 million visitors. The cinemas are rented from third parties and jointly generated a normalised EBITDA of 2.1 million euros in 2013.
An important aspect related to the transaction is the takeover of two new construction projects in Utrecht and Dordrecht:
- An irrevocable planning permission has been received for the construction of the multiplex cinema in Dordrecht (6 halls, 1,200 seats). Construction will start in the autumn of this year and will be completed in 2015. In Dordrecht, Kinepolis is aiming for over 300,000 visitors each year.
- For the megaplex cinema in Utrecht (14 halls, 3,100 seats), planning permission has been obtained recently. The project is designed to be one of the biggest cinemas in the Netherlands. Kinepolis is striving for over 1.25 million visitors a year. As a result of the opening of this megaplex, the existing smaller Wolff cinemas in Utrecht, which have been taken over, could close their doors.
The existing Wolff cinemas, film programming and purchasing activities, plus the forthcoming projects in Utrecht and Dordrecht are being taken over for a total sum of 16.8 million euros. Kinepolis will be financing the new construction projects and will acquire the real estate in full property.
Kinepolis is aiming to further expand its position in the Netherlands and is in this context considering additional greenfield projects. A building permit application is under submission for one of these projects in view of obtaining a building permit in the second half of this year.
Eddy Duquenne, CEO of Kinepolis Group comments: 'I'm very enthusiastic about this opportunity for our group. The existing cinemas which we are taking over in combination with the three current construction projects must ensure that we will attract over 3.5 million visitors in the Netherlands within the next three years, mainly in cinemas for which we will fully control the real estate.
Earlier this year, Kinepolis took over the operation of two Spanish cinemas in Alicante and Madrid from the Spanish cinema group Abaco Cinebox.
Additional info
kinepolis.com
wolff.nl