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Cineworld takes Picturehouse under its wing for £47.3m

Cineworld has confirmed a £47.3m deal with City Screen Group, which trades as Picturehouse, to take control of it’s 21 cinemas across the UK.

The transaction will provide the Cineworld business with 60 more screens, which includes “The Duke’s at Komedia” theatre in Brighton, which opened on Thursday.

Picturehouse Entertainment, the film distribution arm of the acquired company, was also part of Thursday’s deal.Cineworld, whose offices are based in London, said the acquisition will strengthen its offering as a high value, high growth segment of the UK cinema market, while Picturehouse, will continue to operate as a separate business and the deal with Cineworld will allow the firm to open up 10 new sites already in the pipeline.

Stephen Wiener, Chief Executive of Cineworld commented: “This acquisition gives us an opportunity to accelerate our growth by reaching new audiences in a high value and growing part of the market.

“We recognise that Picturehouse is valued by its customers and we look forward to supporting the business through the next phase of its development.”

Picturehouse’s founder director, Lyn Goleby will continue to develop her company under Cineworld’s new ownership.

She commented: “The opportunity to be part of a public company is great news for Picturehouse and our customers.

“The unique character of Picturehouse cinemas will remain and our team will continue to bring the widest range of film to customers.

“This acquisition by Cineworld will accelerate the development of further Picturehouse cinemas around the country.”

Cineworld also said the transaction would enable the company to build on its food and drinks offering to customers, while the deal is expected to increase earnings per share in the coming year.

The company’s share price was up 2.75% on the London Stock Exchange on Thursday morning, with a rise from 246.25 pence on last close to 249 pence.

This was posted in Bdaily's Members' News section by Miranda Dobson .