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Regal Entertainment Group
, a leading motion picture exhibitor
owning and operating the largest theatre circuit in the United States, today
announced that it has entered into an agreement to acquire Hollywood Theaters.
The purchase price will consist of $191 million in cash, approximately $47
million of assumed lease obligations, comprised of capital leases and
financing obligations, and certain working capital. The cash portion of the
purchase price includes repayment of approximately $157 million of the
sellers' debt and is subject to customary post-closing adjustments.
The proposed acquisition would add a total of 43 theatres with 513 screens to
Regal's portfolio at a pre-synergy multiple of approximately 5.9 times cash
flow and includes theatres in 16 states and 3 U.S. territories. The
consummation of the acquisition is subject to customary closing conditions.
“We expect the acquisition of Hollywood Theaters to be accretive to cash flows
and earnings and are pleased to announce an agreement to purchase these high
quality assets,” stated Amy Miles, CEO of Regal Entertainment Group.
“Accretive acquisitions are a key component of our overall business strategy
and we look forward to a successful closing and integration of the Hollywood
Theater assets during the second quarter,” Miles continued.
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