Empire Theatres sold to Cineplex, Landmark
Posted Jun 27, 2013 10:04:50 AM.
This article is more than 5 years old.
Nova Scotia-based Empire Company Limited, owned by the Sobeys family, has reached a deal with Cineplex Inc. and Landmark Cinemas to sell most of its Empire Theatres chain.
Empire says it’s selling 24 theatres and 170 screens in Atlantic Canada and two theatres with 48 screens in Ontario to Cineplex. The deal is worth $200 million in cash.
The purchase includes 24 Empire theatres located in Atlantic Canada – 13 in N.S., six in New Brunswick, three in Newfoundland, and two on Prince Edward Island. Also included are two Ontario locations in Whitby and Kanata.
In a separate deal with Landmark Cinemas, 20 theatres and 179 screens in Ontario and Western Canada, have been sold for $55 million.
“The decision to sell the business of Empire Theatres was a very difficult one as it has a long history with our Company and is a great business with excellent employees who have worked hard over many years to build an attractive entertainment destination,” Paul D. Sobey, President and CEO of Empire Company Limited stated in a news release.
“The decision, however, aligns with the strategic direction of the Company to focus our resources on our food retail business through our 100 per cent interest in Sobeys Inc. and on our related real estate investment through our 42.8 percent ownership interest in Crombie REIT.”
On closing, Empire Company expects to receive cash of approximately $216 million after adjustments and expenses, and intends to utilize these proceeds for debt repayment. The company expects to record a net pre-tax gain on the two transactions of approximately $75 million.
Empire Theatres Limited’s corporate headquarters is located in New Glasgow, N.S., with regional offices in Halifax, Toronto and Calgary. It employs about 2,500 people.
