Cinema chain Vue has acquired Germany’s CineStar for €221.8m, its biggest deal to date.
The deal will see Vue gain 57 premium multiplex sites, 55 of which are in operation with two new sites opening in late 2018 and mid-2019. The addition of 449 screens is the largest acquisition in Vue’s history and significantly expands the firm’s footprint in the European market.
CineStar, previously owned by Australian Event Hospitality & Entertainment, is a leading cinema circuit in Germany.
The deal marks Vue’s third expansion this year after it acquired Cinema3D in Poland and Showtime Cinemas in Ireland.
Vue chief executive Tim Richards said: “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 10 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.”
The agreement entails an upfront payment of €130m and the possibility of up to €91.8m at a later date. It will be financed from existing cash and through €114m of debt.