Kinepolis has reached an agreement to acquire American movie theatre chain MJR Digital Cinemas. The transaction sees Kinepolis crossing the Canadian border to enter the U.S. market.
MJR Digital Cinemas, which is privately held and headquartered in Bloomfield Hills, Michigan, operates 10 movie theatre complexes with a total of 164 screens and a seating capacity of over 20,000, all located in Michigan. All of the locations are multiplex theatres with a capacity varying from 10 to 20 screens. In 2018, the 10 movie theatres drew 6.2 million visitors with total revenue of USD 81.2 million.
Eddy Duquenne, CEO Kinepolis Group said, “I’m very proud we have the opportunity to expand our investment in Canada to the US. The successful acquisition of Landmark Cinemas Canada shows we can successfully implement our corporate strategy in another continent and another time zone. The acquisition of MJR fits perfectly into our expansion strategy: geographically, it adjoins Canada; the movie theatres are all multi- or megaplexes, and we also acquire an important real estate position. I'm particularly enthusiastic about the eagerness of the current MJR team to implement Kinepolis’ management vision and customer concepts at the MJR cinemas.”
Mike Mihalich, founder and CEO of MJR Digital Cinemas said, “I was very fortunate to build MJR from the ground up into the tremendous theatre circuit it is today. I am delighted my outstanding supporting cast will continue as part of the larger Kinepolis team to serve our customers with the same high standards my team established and maintained since MJR’s founding in 1999. I am comforted such a high quality operator with shared values will steward MJR into the future.”
The acquisition of MJR, which is subject to U.S. antitrust clearance and other customary closing conditions, fits into Kinepolis’ expansion strategy and allows the group to expand its investment in the North American market only eighteen months after the acquisition of Landmark Cinemas in Canada. Kinepolis expects to be able to complete the transaction before the end of October 2019.
Kinepolis says it will continue to operate MJR under the existing brand name. The movie theatre chain, which employs 815 people, will continue to be managed by the current management, which, for the integration, will be supported by the European Kinepolis team and by the Canadian Landmark team.
Kinepolis Group http://www.kinepolis.com/corporate