8 December 2017
Kinepolis Group has completed the acquisition of the Canadian movie theatre group 'Landmark Cinemas'. Mid September 2017, Kinepolis reached agreement with the shareholders of Landmark Cinemas, but the acquisition was subject to Canadian regulatory approvals. The approval by the Minister of Canadian Heritage, on 7 December 2017, allowed Kinepolis to successfully complete the takeover process.
Landmark Cinemas operates 44 movie theatres of various sizes, all located in Central and Western Canada, and has its head office in Calgary (Alberta). The 44 Landmark Cinemas movie theatres, with a total of 55,000 seats and 303 screens, realized CAD 156.3 million turnover in 2016 with 10.2 million visitors. The company is Canada's second largest cinema operator, with a market share of 10%.
Three quarters of the movie theatres under the acquisition are leased, accounting for 95% of the visitors. The group operates two megaplexes (more than 16 screens), 17 multiplexes (more than 8 screens) and 25 smaller movie theatres spread over six Canadian provinces. Landmark Cinemas generates 92% of its turnover in the country's biggest regions, Ontario, British Columbia and Alberta. Five cinemas have an IMAX screen, another five are equipped with premium large format (PLF) screens and 11 complexes offer the recliner seat experience or are scheduled to do so soon.
The acquisition fits in with the expansion strategy pursued by Kinepolis and enables the Group to enter a new market, characterized by healthy macroeconomic prospects, a growing population and a favourable business climate. Entering a new continent creates a better geographic spread of Kinepolis' business activities and new growth opportunities, through acquisitions and new-build projects. The agreement with Landmark Cinemas already includes two new-build projects in Alberta province, one in St. Albert and one in Fort McMurray. It also includes plans for more new-build movie theatres.
The acquisition has an enterprise value of CAD 122.7 million, corresponding to an acquisition price of around € 84.2 million at an exchange rate of 1.46.
Kinepolis will manage the Canadian company, which employs 1,450 people, through a local executive management board made up of the current Landmark Cinemas management and supported by an integration team that will facilitate the integration and adapt Kinepolis' strategy for the Canadian market.
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Kinepolis Group was formed in 1997 by a merger of two family-run cinema groups and was first listed on the stock exchange in 1998. Kinepolis proposes an innovative cinema concept that serves as a pioneering model within the industry. In Europe, Kinepolis Group NV has 48 cinemas spread across Belgium, the Netherlands, France, Spain, Luxembourg, Switzerland and Poland. In addition to its cinema business, the Group is also active in film distribution, event organization, screen advertising and property management.
Following this acquisition, Kinepolis Group operates 92 cinemas (42 of which it owns), with a total of 802 screens and more than 180,000 seats. Including the acquired Canadian organization, Kinepolis now employs 3,750 people, all committed to giving millions of visitors an unforgettable movie experience.