The acquisition includes a variable consideration of up to €91.8M, which sets CineStar’s value at around €221.8M. The purchase includes 57 multiplex sites (55 in operation with two new sites opening in late 2018 and mid-2019) with 449 screens. It’s Vue’s biggest buy to date.
The German circuit will be acquired from its current owner, Event Hospitality & Entertainment Limited (EVT), the Australian entertainment, hospitality and leisure company. The transaction will be financed from existing cash resources and €114M of debt financing which has been underwritten.
CineStar is well known for its strong presence in rural areas as well as in Berlin where it has seven state-of-the-art cinemas, including the well known CUBIX at Alexanderplatz. Completion of the deal is subject to regulatory consent.
Tim Richards, Founder and CEO of Vue International commented, “This acquisition is our third international acquisition this year and further reinforces our commitment to international expansion. Germany is an extremely important cinema market and is consistently in the top ten box office markets in the world. The acquisition of CineStar supports our strategic and business objectives of developing and owning the highest quality cinema assets globally. We look forward to further investing in the estate and welcoming CineStar into the Vue Group.”
Vue has made 14 acquisitions since its inception 15 years ago with this acquisition being the third in 2018 following agreements to acquire Cinema3D in Poland and Showtime Cinemas in Ireland. The brand now operates via Vue Entertainment in the UK and Ireland, CinemaxX in Germany and Denmark, Space in Italy, Multikino in Poland, Latvia and Lithuania, Vue Nederland in the Netherlands and SBC in Taiwan.