This is kind of retail in nature - AMC Theatres is selling its Canadian operations. The parent company in the U.S. was not doing well and was recently sold to a Chinese theatre chain.
Cineplex is the proud new owner of the AMC theatres at Yonge and Dundas, Courteney Park in Mississauga and Winston Churchill in Oakville, as well as the location in the Forum in Montreal.
Empire Theatres is acquiring the AMC theatres in Whitby and Kanata.
This will bring Cineplex back to the Yonge Dundas for the first time in 11 years, I think. I did think it also meant that Cineplex now controlled all multiplexes downtown, but then I realized that there is also the TIFF Lightbox and Rainbow Cinemas Market Square.
Chains divvy up AMC movie theatres in Canada
By ROBERT BOSTELAAR, The Ottawa Citizen June 21, 2012
OTTAWA — Empire Theatres Ltd. and Cineplex Inc. will take over AMC Entertainment movie complexes in Ontario and Quebec as the U.S.-owned chain exits Canada.
Empire is buying AMC’s 24-screen theatres in Kanata and Whitby, Ont., while Cineplex will acquire complexes in Toronto, Oakville, Mississauga and Montreal.
Cineplex said it was paying a nominal sum for the theatres. Empire would not disclose financial details but company vice-president Dean Leland noted that the complexes Empire was acquiring are “very successful operations.”
Empire already owns three other Ottawa theatres and plans to open a complex in the renovated Lansdowne Park in 2012.
This week’s acquisitions brings Empire’s total across Canada to 53 theatres with 438 screens, including seven IMAX auditoriums. The company headquarters are in Stellarton, Nova Scotia.
The company said in a statement that it will upgrade all auditoriums with digital technology and make other improvements.
“Empire Theatres has a proven track record of being a valued employer and contributor in the communities where we operate,” Leland said.
Cineplex is the largest movie exhibitor in Canada with ownership or interests in 134 theatres and 1,445 screens. It also said it will add digital projection systems to its new locations.
Last month, Chinese company Wanda signed a deal in Beijing Monday to buy AMC, the second-largest theatre chain in North America. If approved by U.S. and Chinese regulators, the $2.6-billion U.S. acquisition will create the world’s largest theatre group, the companies said.
AMC said a string of hit movies in recent months had lifted it back into profits this year.
With files from The Canadian Press
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