Movie exhibition giant Regal Entertainment Group has agreed to acquire Hollywood Theaters in a deal worth $238 million.
It will add 43 theaters with 513 screens to Regal’s portfolio. The theaters are located in 16 U.S. states and three U.S. territories.
With 6,880 screens in 540 locations, Regal is already the largest U.S. exhibition circuit. The purchase price consists of $191 million in cash, about $47 million in assumed lease obligations and "certain working capital," the company said without providing further details.
The cash portion includes repayment of approximately $157 million in debt held by the sellers.
“We expect the acquisition of Hollywood Theaters to be accretive to cash flows and earnings and are pleased to announce an agreement to purchase these high-quality assets,” said Regal CEO Amy Miles. “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."