Regal adds Consolidated Theatres
EmptyNEW YORK -- As shares of film exhibitors set new lows Tuesday, sector giant Regal Entertainment Group said it has agreed to acquire Southern U.S.-focused Consolidated Theatres for $210 million in cash.
The proposed transaction will add 28 theatres with 400 screens to Regal's ownership portfolio, boosting its presence in Georgia, Maryland, North Carolina, South Carolina, Tennessee and Virginia.
Knowxville, Tenn.-based Regal expects to close the deal for Charlotte, NC-based Consolidated during the first half of the year.
"We expect the acquisition of Consolidated Theatres to be accretive to cash flows and earnings," Regal chairman and CEO Mike Campbell said, highlighting that accretive deals remain a key part of his firm's overall strategy.
Regal's theatre circuit already comprises the Regal Cinemas, United Artists Theatres and Edwards Theatres brands. The company currently operates 6,355 screens in 526 locations in 39 states and the District of Columbia. Regal has theatres in all of the 25 biggest U.S. markets.
Amid a general market sell-off, Regal shares set a new 52-week low of $16.79 Tuesday before closing down 1.7% at $17.03.
Similarly, Carmike Cinemas shares finished down 10.1% at $4 after setting a new 52-week low of $3.91 intra-day. Shares of Cinemark Holdings held up better than their peers, closing down 1.1% at $14.06, above its 52-week low of $12.24.