Cineworld Group signs definitive agreement to acquire Cineplex for C$2.8B

Lead Office

Toronto

Value

2.80 Billion CAD

On December 16, 2019, Cineworld Group plc announced that it has entered into a definitive agreement to acquire Cineplex Inc., Canada’s largest cinema operator.

Cineworld Group will acquire all of the issued and outstanding common shares of Cineplex for C$34 per share in cash, representing a premium of 42% to the closing price on the Toronto Stock Exchange (TSX). The total transaction value is approximately C$2.8 billion including the assumption of net debt.

This transaction is an extension of Cineworld’s growth strategy, adding 165 cinemas and 1,695 screens, and creating the leading North American cinema operator.

The acquisition, related expenses and the refinancing of the existing Cineplex debt will be funded by approximately US$2.3 billion to be raised through committed debt facilities, consisting of a US$1.9 billion senior secured incremental term loan facility and a US$0.3 billion short-term senior unsecured term loan facility.

Cineworld Group plc was founded in 1995 and has grown through expansion and by acquisition to become the second largest cinema chain worldwide, holding the number one or number two position by number of screens in each of its regions.

McCarthy Tétrault LLP advised Cineworld Group plc with a core team led by David Woollcombe (as transactional lead) and Jason Gudofsky (as relationship partner and lead Competition/Investment Canada counsel) that included Rob Hansen, Heidi Gordon, Claire Lehan, Leah Whitworth, Matt Vaughan and Victoria Zed (Corporate), Debbie Salzberger, Kate McNeece and Erin Keogh (Competition/Investment Canada), Kelleher Lynch (Pensions & Benefits), Raj Juneja and Angelo Discepola (Tax), Patrick Pengelly (Labour & Employment), and Ted Cox (Real Property).

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