Regal Entertainment Group (RGC) 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.
The company expects the acquisition of Hollywood Theaters to be accretive to cash flows and earnings.
"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," said Amy Miles, CEO of Regal Entertainment Group.
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