ODEON & UCI Cinema Group has been bought by AMC Entertainment, a U.S. chain owned by Chinese conglomerate Dalian Wanda, in a deal worth US$1.21 billion.
Odeon & UCI is currently owned by private equity firm Terra Firma, and has 242 theaters with 2,236 screens.
Dalian Wanda, the world’s biggest movie theater operator, is led by China’s richest man Wang Jianlin.
Odeon & UCI will continue to be based in London and will operate as a subsidiary of AMC.
Adam Aron, AMC’s chief executive and president, said in a statement, “This is a once-in-a-generation opportunity to acquire Europe’s leading cinema chain and create the world’s biggest and best theater operator.”
He said there were uncertainties created by Brexit, but added “we are encouraged that current currency rates are highly favorable to AMC with the pound falling to a three decade low versus the dollar.”
The addition of Odeon & UCI will mean AMC has 627 theaters and more than 7,600 screens in eight countries.
The sale is still subject to competition clearance from the European Commission.
David Hancock, head of film and cinema at IHS Technology, said, “AMC is part of the Wanda group, which includes screens in China, AMC in the United States, Hoyts in Australia and now Odeon UCI in Europe: all major exhibitors in their part of the world and making Wanda the largest global cinema exhibition group.
“In addition, Wanda has built the world’s largest film production studio in China and acquired Legendary Entertainment, a U.S. producer of blockbuster features, as well as assets in big data, entertainment marketing and gaming distribution.”
Hancock said the Odeon & UCI sale had been a long-running saga. Terra Firma paid 650 million euros (US$840 million) for Odeon in 2004 and bought UCI the same year for 350 million euros, merging the two groups. It tried to sell Odeon & UCI in 2011, but abandoned the process after failing to attract bids close to its 1.2 billion pounds (US$1.59 billion) valuation. There was an unsuccessful second attempt in 2013.
(SD-Agencies)
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