TORONTO, ONTARIO--(Marketwired - Sept. 21, 2016) - Cineplex Entertainment ("Cineplex") (TSX:CGX) today announced that it is acquiring all of the issued and outstanding shares of Tricorp Amusements Inc. ("Tricorp"). Upon completion of the transaction, which is expected to close in early October, New Jersey-based Tricorp will become part of Cineplex Starburst Inc. ("CSI"), a wholly owned and operated subsidiary of Cineplex Entertainment. Financial terms were not disclosed.
"With Premier Amusements as well as through strategic mergers and acquisitions like Brady Starburst last year, CSI has become one of the leading distributors and operators of amusement and gaming equipment across North America," said Ellis Jacob, President and CEO of Cineplex Entertainment. "The acquisition of Tricorp enables CSI to further scale its US presence and create opportunities for significant growth."
Tricorp is a leading provider of interactive video, redemption and amusement gaming services through revenue sharing agreements in the United States. It has a diversified client portfolio focusing on the theatrical exhibition vertical as well as community-based family entertainment destinations such as bowling centres, amusement and water parks, indoor mini-golf and laser tag facilities, as well as casinos and restaurants. It also specializes in entertainment centre design and has over 35 years of experience in delivering high quality entertainment programing and attraction selection.
"This transaction with Cineplex is exciting because it will allow for greater scale in our existing business channel and provide for even more opportunities for the entire Tricorp team," said Charles T. Peitz, Founder and Chief Executive Officer, Tricorp Amusements Inc. "Combining our two organizations creates a powerful, strong and diverse amusement company that can now provide amusement services to a much broader and expanded market across North America."
Headquartered in Toronto, Ontario, CSI has 16 offices across Canada and the United States operating as Cineplex Starburst, Brady Starburst, Premier Amusements and Playdium. The acquisition announced today strengthens CSI's already strong US market position by adding nearly 100 Tricorp employees covering over 20 states from five regional distribution centres across the eastern seaboard. The Tricorp corporate offices will remain in New Jersey and the executive management team will continue to be led by industry veterans Charles 'Chuck' Peitz and Joe Ingui.
With pro forma revenues of approximately $28.0 million USD and pro forma adjusted EBITDA of approximately $6.0 million USD, the Tricorp acquisition will be financed with cash-on-hand and existing credit facilities.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"). Those risks and uncertainties include: adverse factors generally encountered in the film exhibition industry such as poor film product and unauthorized copying; risks associated with national and world events, including war, terrorism and international conflicts; natural disasters or extreme weather conditions; infectious diseases; changes in income tax legislation; and general economic conditions. In addition, these risks and uncertainties include: the ability to achieve the expected synergies and the timing of same; the effectiveness of integration efforts and risks related to the satisfaction of the conditions to closing the transaction; and the related financing arrangements, including future general economic and market conditions and the associated debt and equity capital markets. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. All forward-looking statements in this press release are qualified by these cautionary statements. These statements are made as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. Additional information, including Cineplex's AIF, can be found on SEDAR at www.sedar.com.
Cineplex Inc. ("Cineplex") is one of Canada's leading entertainment companies and operates one of the most modern and fully digitized motion picture theatre circuits in the world. A top-tier Canadian brand, Cineplex operates numerous businesses including theatrical exhibition, food service, amusement gaming, alternative programming (Cineplex Events), Cineplex Media, Cineplex Digital Media, and the online sale of home entertainment content through CineplexStore.com and on apps embedded in various electronic devices. Cineplex is also a joint venture partner in SCENE - Canada's largest entertainment loyalty program.
Cineplex is headquartered in Toronto, Canada, and operates 163 theatres with 1,667 screens from coast to coast, serving approximately 77 million guests annually through the following theatre brands: Cineplex Cinemas, Cineplex Odeon, Cineplex VIP Cinemas, Galaxy Cinemas, SilverCity Cinemas, and Scotiabank Theatres. Cineplex also owns and operates the UltraAVX™, Poptopia, and Outtakes brands. Cineplex trades on the Toronto Stock Exchange under the symbol CGX. More information is available at Cineplex.com.