Cinema group Cineworld has made its first overseas acquisition with the purchase of Spanish cinema chain Cinesur Circuito Sanchez-Ramade.
Cinema group Cineworld has made its first overseas acquisition with the purchase of Spanish cinema chain Cinesur Circuito Sanchez-Ramade.
The deal for Cinesur, Spain’s fifth largest cinema operator, is for an undisclosed amount but Cineworld report that gross assets valued at €18.6 million (£16.3 million) are being acquired. The purchase is to be made using a new loan facility.
The move comes as Cineworld looks to expand its operations beyond the UK. According to a statement from the company, the average cinema attendance for each person in Spain is 2.38 times a year, compared with the UK where people attend 2.81 times a year.
The research, carried out by Dodona, also reveals that Spain is the fifth largest cinema market in Europe with annual revenues of €800 million in 2009.
Stephen Wiener, CEO of Cineworld, says that Cineworld’s first continental acquisition will enable the business to begin operations in a market that has ‘good growth prospects’.
Wiener adds: ‘ Cinesur is an attractive platform for growing market share in a country that is serviced by many smaller cinema chains.’
In June 2010, Cineworld acquired the 11-screen cinema multiplex at London’s O2 arena. Cinesur has a total of eleven cinema multiplexes and 136 screens.
