Cinema City International NV (WSE: CCI) controlling shareholders the Greidinger family, has expanded its operations in Eastern Europe with the acquisition of Palace Cinemas (Central Europe) BV for €28 million ($38 million). The acquisition expands Cinema City's presence in Hungary and the Czech Republic, and adds Slovakia to its area of operations.
Cinema City International has a market cap of $780 million. It is the largest operator of multiplexes in Central and Eastern Europe, as well as in Israel through Cinema City Ltd. The company is controlled by CEO Moshe (Mooky) Greidinger and CFO Israel Greidinger through Israel Theaters Ltd.
Cinema City International went public on the Warsaw Stock Exchange four years ago, and is considered one of the more successful IPOs by an Israeli company in Europe. Its share price rose 39% in the past year and is up 125% since the IPO.
The acquisition of Palace Cinemas is Cinema City's first. “Today we took a major step forward on our path to consolidating our position as one of the leading cinema operators in Europe," said Moshe Greidinger. Palace Cinemas has 141 screens in 15 multiplexes (65 screens in the Czech Republic, 29 screens in Slovakia, and 47 screens in Hungary).
At the closing, Cinema City paid Palace Cinema's owner, private equity firm Argus Capital Partners LP, €21.4 million in cash, and assumed Palace Cinema's debt of €6.6 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2011
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