Pitch Best Mid-Cap Corporate Deal M&A Awards Belgium 2019: Kinepolis Group – MJR Digital Cinemas

Name of the deal:        Kinepolis Group acquired US Movie theatre chain MJR Digital Cinemas.        
Date closed:                 2nd of September 2019
Published value:          €139 million
Buyer:                           Kinepolis Group
Target:                          MJR Digital Cinemas
Seller:                           MJR Digital Cinemas shareholders
M&A Database:          https://mena.nl/deal/11658

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Involved firms and advisors target:
Financial advisor: PJ Solomon
Legal: Honigman LLP

Involved firms and advisors buy side:
Legal: Stibbe

Pitch

Brief description deal / Deal outline:
Kinepolis acquired US movie theatre chain MJR Digital Cinemas.

Deal rationale:
This transaction is in line with Kinepolis’ expansion strategy.

What is the impact of this deal for the company?
It allows Kinepolis to expand from its basis in Canada into the US.

What is the impact of this deal for the direct stakeholders?
The supporting cast of MJR Digital Cinemas’ Founder and CEO, will continue as part of the larger Kinepolis team, implementing Kinepolis’ management vision and customer concepts at the MJR cinemas. Kinepolis will continue to operate MJR under the existing brand name.

What is the impact of this deal on the society?
Kinepolis wants to offer the ‘ultimate movie experience’ to its film and culture lovers. To this end, it combines a state-of-the-art cinema infrastructure with a tailor-made offering for various target groups.15. Why does this deal deserve a nomination?The transaction is a logical add-on following up on the acquisition Kinepolis made in Canada and is proof of how a Belgian company, which is a leader in its business field, can further expand internationally thus also moving up the chain amongst the worldwide top of theatre operators. 

Comments Panel of judges
To do an overseas acquisition in times when the cinema industry is experiencing strong competition from parties such as Netflix is a courageous decision. In 2017 Kinepolis acquired a company in Canada. The position acquired there was used as a springboard to the United States. Although acquisitions across the ocean are always exciting, the Panel of Judges believes that the "Ink Spot strategy" can be successful. The cooperation with the Canadian team shows that is was a well-considered acquisition. Relatively speaking, it is an impressive acquisition, because Kinepolis EBITDA increases by more than 10 percent. The Panel of Judges also sees a good match in the philosophy that Kinepolis and MJR share. Both parties go beyond traditional cinema visits and offer an "experience".