Cineplex Entertainment will pay roughly $3.3 million to buy Toronto-based New Way Sales Games Ltd, a distributor and supplier of arcade games. Cineplex is buying the company from investors Roynat Capital and Knight’s Bridge Capital Partners. The deal is expected to close in late May.
Cineplex Entertainment (“Cineplex”) (TSX:CGX) announced today it will acquire Toronto-based New Way Sales Games Ltd. (“NWS”), one of the largest distributors and suppliers of arcade games to the amusement industry in Canada. Cineplex will purchase NWS from Roynat Capital Inc. and Knight’s Bridge Capital Partners Inc. The total transaction value is estimated to be approximately $3.3 million.
NWS is a supplier of games to numerous arcades, amusement centers, bowling alleys, amusement parks and theatre circuits, in addition to owning and operating three amusement centres in the West Edmonton Mall. NWS also sells new, used and reconditioned equipment. After the acquisition by Cineplex, the company will continue to offer these services to Cineplex and other third parties.
NWS currently provides games for all Cineplex Odeon and Galaxy Cinemas, representing over half of the locations within the Cineplex circuit. Cineplex operates amusement areas and entertainment centres of varying sizes within all Cineplex Entertainment theatres.
The acquisition is expected to close in late May 2011.
About Cineplex Entertainment
Cineplex Inc. (“Cineplex”) is the largest motion picture exhibitor in Canada and owns, leases or has a joint-venture interest in 130 theatres with 1,352 screens serving approximately 70 million guests annually. Headquartered in Toronto, Canada, Cineplex operates theatres from British Columbia to Quebec and is the exclusive provider of UltraAVX(TM) and the largest exhibitor of digital, 3D and IMAX projection technologies in the country. Proudly Canadian and with a workforce of approximately 10,000 employees, the company operates the following top tier brands: Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres. Cineplex shares trade on the Toronto Stock Exchange (TSX) under the symbol “CGX”. For more information, visit www.cineplex.com.
About Roynat Capital Inc.
Since 1962, Roynat Inc. has been delivering creative capital solutions to businesses across North America. With 19 offices nationwide, Roynat offers financing alternatives by drawing on a broad range of financial solutions including term loans, leasing, subordinated debt and equity. Roynat Inc. is a wholly owned subsidiary of Scotiabank, one of North America’s premier financial institutions and Canada’s most international bank. For more information, visit www.roynat.com.
About Knight’s Bridge Capital Partners Inc.
Knight’s Bridge Capital Partners is an opportunistic and diversified private equity manager headquartered in Toronto, Ontario. We are dedicated to building portfolio companies into market leaders and industry stars. We recognize the uniqueness of every opportunity, and provide not only capital but mentoring, guidance, strategic support and key contacts across diverse business segments, enabling our portfolio companies to realize and unlock their true value. www.kbcpartners.com. Knight’s Bridge is a subsidiary of Counsel Corporation.