Regal Entertainment Group, already the largest theatrical exhibitor in the United States, is about to get even bigger.The company announced Tuesday that it has entered into an agreement to acquire Hollywood theatres in a deal worth more than $238 million. In return, Regal will add 43 theatres with 513 screens to its portfolio.
Regal currently boasts 6,880 screens in 540 locations.
The company will pay $191 million in cash and approximately $47 million of assumed lease obligations from Hollywood theatres. The cash portion of the purchase price includes repayment of approximately $157 million in Hollywood theatres’ debt.
“We expect the acquisition of Hollywood theatres to be accretive to cash flows and earnings and are pleased to announce an agreement to purchase these high quality assets,” Amy Miles, CEO of Regal Entertainment Group, said in a statement.
Shares of Regal rose 2.54 per cent to $15.72 after the deal was announced.
During its most recent quarterly earnings, Regal saw revenue rise to $723 million, an 18 per cent year-over-year jump that bested analysts’ expectations. The company’s earnings also doubled to $0.28 per share, as it reported net income of $37.3 million.
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