Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema, the Austin-based theatre chain known for its experiential dine-in movie theatres. The deal, announced on 12 June, places Alamo Drafthouse under SPE’s newly created division, Sony Pictures Experiences and serves to underscore the studio’s commitment to theatrical exhibition.

Michael Kustermann, will stay on as CEO of Alamo Drafthouse, and head Sony Pictures Experiences. Alamo will maintain its brand identity and continue operating its 35 cinemas across 25 metropolitan areas. The company’s Austin, Texas headquarters and its renowned genre film festival, Fantastic Fest, will also remain unchanged. “Alamo Drafthouse’s differentiated movie-going experience, admired brand, and devoted community fit well with our vision,” said Ravi Ahuja, President and COO of SPE, highlighting the synergy between SPE’s experiential entertainment initiatives and Alamo Drafthouse’s unique offerings. The acquisition is seen as a strategic move to enhance SPE’s engagement with entertainment fans through distinctive, out-of-home experiences.

Founded in 1997 by Tim and Karrie League, Alamo Drafthouse has grown to become North America’s seventh-largest theater chain, with over 10 million guests annually and a core audience of 4 million loyalty members. The theater chain experienced a 30% increase in box office revenue last year, outperforming the industry average. SPE acquired Alamo Drafthouse from Altamont Capital Partners, Fortress Investment Group, and Tim League, with Goldman Sachs acting as the exclusive financial advisor for the transaction. Financial details of the sale were not disclosed though at least one report put the price tag at just north of USD $200 million.