Paris-based exhibitor and distributor MK2 has bought Spain’s third largest exhibitor Cinesur in a deal valued at around €10.5 million. MK2, which this month celebrates its 40th anniversary, is based only in France’s capital where it controls 11 multiplexes with 65 screens, as well as four high-end theatres.
The deal has surprised industry watchers, as there are few obvious synergies between the two chains. MK2 has already announced that it will be closing two Cinesur cinemas in the province of Malaga with a total of 16 screens going dark
Cinesur was established in 1932 by the Sanchez-Ramade family and is focused on the southern part of Spain around Andalucia in cities such as Seville, Cordoba, Malaga and Toledo. The exhibitor was put up for sale in 2011 when the other parts of the Sanchez-Ramade business empire (primarily construction) took a hit.
It was supposed to be bought by UK’s Cineworld, which instead pulled out at the 11th hour and ended up merging with Israeli/Central European chain Cinema City instead. Cinesur has nine cinemas, with a total of 120 screens and 22,000 seats, part of the deal.
According to the then press release, Cineworld was set to pay €18.6 million for the business. Though no price has been announced this time, it is thought that Mk2 paid around €10.5 million, which would imply a near halving of the price and perhaps the primary driver for the deal. The holding company of Cinesur was also in bankruptcy, making the deal faster and cheaper. As Diario Sur put it, the chain was “going through a serious crisis that forced it to hang the ‘For Sale’ sign on their cinemas. ” With both similarly-sized circuits having limited geographical spread and different languages, it is difficult to see what if any immediate synergies the deal offers.
MK2 was founded by the legendary French producer/distributor Marin Karmitz, with his son Nathanael Karmitz taking over the business in 2005. In 2012 the company suffered from four costly box office failures (including “On the Road”, by Walter Salles, and “Like Someone in Love”, by Abbas Kiarostami) and switched focus to its cinema and catalogue of around 500 titles. At this year’s Cannes Film Festival, though, the company was once again ubiquitous, handling distribution of the award-winning “Mommy” by Xavier Dolan.