14 October 2019
Kinepolis Group has completed the acquisition of American movie theatre chain MJR Digital Cinemas. At the beginning of last month, Kinepolis reached agreement on the acquisition, but it was subject to American regulatory approvals. The approval has been obtained and allowed 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 movie theaters drew 6.2 million visitors with total revenue of USD 81.2 million.
Seven locations are owned (114 screens), including three on a leasehold site, the remaining three are rented complexes (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. Furthermore, nearly all movie theaters are equipped with recliner seats. These motorized, fully reclinable seats are also very popular in Canada.
Eddy Duquenne, CEO Kinepolis Group: “I’m very proud we have the opportunity to expand our investment in Canada to the US. 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’ management vision and customer concepts at the MJR cinemas.”
The acquisition represents an enterprise value1 of USD 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 USD 13 million.
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 the current management, which, for the integration, will be supported by the European Kinepolis team and by the Canadian Landmark team.
(Picture and current overview Kinepolis Group attached)
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Kinepolis Group NV was formed in 1997 as a result of the merger of two family-run cinema groups and was listed on the stock exchange in 1998. Kinepolis offers an innovative cinema concept which serves as a pioneering model within the industry. In addition to its cinema business, the Group is also active in film distribution, event organization, screen publicity and property management.
In Europe, Kinepolis Group NV has 54 cinemas spread across Belgium, the Netherlands, France, Spain, Luxembourg, Switzerland and Poland. Since the acquisition of Canadian movie theatre group Landmark Cinemas and American movie theatre group MJR, Kinepolis also operates 45 cinemas in Canada and 10 in the US.
In total, Kinepolis Group currently operates 109 cinemas worldwide, with a total of 1,065 screens and almost 200,000 seats. Kinepolis employs 4,600 people, all committed to giving millions of visitors an unforgettable movie experience. More information on www.kinepolis.com/corporate.
1 Enterprise value, i.e. before adjustment for, among other things, net financial debt