Vue International has agreed to acquire CineStar in Germany for an upfront payment of €130 million and variable consideration of up to €91.8 million. This represents a maximum potential enterprise value of €221.8 million.
The acquisition of 57 premium multiplex sites (55 in operation with two new sites opening in late 2018 and mid-2019) with 449 screens is the largest in Vue’s history and signifies Vue’s continuing confidence in the European market and the future of the international exhibition industry.
CineStar is a leading cinema circuit in Germany and is well known as one of the most innovative and exciting cinema and entertainment providers. The circuit will be acquired from Event Hospitality & Entertainment Limited (EVT), Australia’s premier entertainment, hospitality and leisure company.
Vue’s successful expansion strategy has seen 14 acquisitions since its inception 15 years ago with this acquisition being the third in 2018 following on from the recent agreements to acquire Cinema3D in Poland and Showtime Cinemas in Ireland.
CineStar will be joining a leading international cinema Group that owns and operates the most respected brands in the industry. Vue International is globally recognised as having a significant position in the industry, owning and operating 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.
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.”
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 famous CUBIX at Alexanderplatz.
Completion of the CineStar transaction is subject to regulatory consent. Further information will be available on the Vue International website.
The transaction will be financed from existing cash resources and €114m (c.£102m) of debt financing which has been underwritten. On a pro-forma basis the transaction will be leverage neutral to the Vue Group’s Q3 2018 net leverage position.