REGAL CINEMAS SIGNS DEFINITIVE MERGER AGREEMENT TO ACQUIRE COBB THEATRES FOR $200 MILLION.
Commenting on the announcement, Mr. Campbell said, "We are very pleased to announce our association with a high quality theatre circuit like Cobb Theatres. In addition to the relatively young age of its theatre base, Cobb Theatres operates an average of 9.6 screens per theatre, which is one of the highest averages among its peers. We will inherit an aggressive building program from Cobb Theatres that is concentrating on constructing complexes of 16 to 28 screens per location, further enhancing the high existing screen-count average. This profile fits well with Regal's position as one of the nation's leaders in multi-screen theatre development. Cobb Theatres also has more than 75% of its screens in operation in Florida, a state in which, because of its strong demographics and ongoing growth trends, we have had a focused effort for some time.
"The transaction further demonstrates the opportunities available for Regal to benefit from the ongoing consolidation of the growing, yet highly fragmented, film exhibition industry. Although Regal has built a substantial internal theatre development capability, its extensive merger and acquisition history has enabled it to create an in-depth expertise in negotiating acquisitions at fair valuations, integrating acquired screens into its existing operations and improving their revenues and profitability. The transaction with Cobb Theatres is similar to earlier transactions in these respects.
"Upon the completion of this transaction, Regal will have 2,076 screens in operation at 235 theatre locations. Already one of the fastest growing and most profitable of the major theatre companies, Regal will then also become the third largest theatre circuit in North America. In addition, Regal has more than 900 new screens either under construction or in pre-construction development that it expects to open over the next two years. We currently anticipate opening 250 to 300 new internally developed screens during 1997, excluding the 83 screens that Cobb Theatres will open during the balance of 1997."
Founded in November 1989, Regal Cinemas, Inc. is one of the country's fastest growing theater chains. The Company primarily shows first run movies and currently has 165 multi-screen theaters in operation with an aggregate of 1,387 screens, ranking it as the sixth largest North American theater circuit.
CONTACT: Regal Cinemas, Inc., Knoxville
Lewis Frazer III, 423/922-1123
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|Date:||Jun 11, 1997|
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