Cineplex Announces Strategic Sale: Cineplex Inc., Canada’s premier entertainment and media company, said today that it has entered into a formal agreement to sell Player One Amusement Group (“P1AG”) to OpenGate Capital (“OpenGate”).
OpenGate will acquire P1AG’s issued and outstanding common shares for a total acquisition price of $155 million in cash, subject to normal post-closing adjustments (the “Transaction”). The Transaction creates enormous value for the company and its stakeholders while also providing immediate cash for repayment of net proceeds against the Company’s credit facility.
The transaction, which is subject to regulatory clearances and other standard closing conditions, is scheduled to conclude in the first quarter of 2024. P1AG has signed into a long-term agreement to continue supplying and servicing amusement games in Cineplex’s cinemas and location-based entertainment facilities as part of the Transaction.
Cineplex’s financial advisors are Scotiabank and TD Securities, and the Company’s legal counsel is Goodmans LLP in connection with the Transaction.
Cineplex Announces Strategic Sale
Cineplex (TSX:CGX) is a leading Canadian brand that engages in the Film Entertainment and Content, Amusement and Leisure, and Media industries. Through its network of over 170 movie theaters and location-based entertainment facilities, it provides a unique getaway from the daily to millions of people.
In addition to being Canada’s largest and most innovative film exhibitor, the company owns and operates Canada’s favorite ‘Eats & Entertainment’ destination (The Rec Room), complexes specifically designed for teens and families (Playdium), and a newly launched entertainment concept that combines movies, amusement gaming, dining, and live performances under one roof.
Additionally, it runs prosperous companies in the areas of digital commerce (CineplexStore.com), amusement solutions (Player One Amusement Group), motion picture distribution (Cineplex Pictures), alternative programming (Cineplex Events), cinema media (Cineplex Media), and digital place-based media (Cineplex Digital Media). As a partner in Scene+, Canada’s biggest entertainment and lifestyle loyalty program, Cineplex offers its patrons even more value.
With over 10,000 employees working in its offices and venues across Canada and the US, Cineplex is proud to have one of the nation’s Most Admired Corporate Cultures.
Pending closing conditions, the deal is anticipated to conclude in the first quarter of 2019. It has a long-term contract committing Player One to provide arcade games to Cineplex theaters and other location-based entertainment establishments across Canada.
Ellis Jacob, president and CEO of Cineplex, stated, “We proudly built the P1AG business, through several acquisitions and organic growth, to become a North American leader in amusement gaming solutions which has delivered strong, consistent results, especially coming out of the pandemic.”