Company to Become Part of Player One Amusement Group
Third Strategic Acquisition of US-based Amusement Service and Gaming Provider in Six Months
TORONTO, March 10, 2017 /CNW/ - (TSX: CGX) Today, Cineplex announced that it is acquiring all of the assets of Dandy Amusements International, Inc. ("Dandy"). Upon completion of the transaction, which is anticipated to take place in April 2017, Dandy will become part of Cineplex's Player One Amusement Group ("Player One"). Financial terms were not disclosed.
"With Player One, we remain focused on scaling our US operations through new and existing customer development, segment expansion and strategic mergers and acquisitions like this one," said Ellis Jacob, President and CEO, Cineplex. "Dandy is well-known in the industry as a leading amusement gaming machine operator in the western United States and we are pleased to have them join our rapidly growing Amusement Solutions business. Today's announcement further strengthens our ability to service customers on a truly North American scale."
Dandy operates within the coin-operated, route operations amusement equipment segment, predominantly in the western United States, including California, Arizona, Washington and Texas. Based in Simi Valley, California, the company has a concentrated and loyal client portfolio focusing primarily on the theatrical exhibition vertical, offering a mix of equipment that is consistent with Player One's existing product portfolio. The acquisition reinforces Player One's already strong US market position by adding over 50 employees to the team, including John Lemieux who has been with Dandy for 25 years and who will now lead western operations for Player One.
"I am very pleased to be selling my business to a company that is so committed to the amusement gaming industry as I believe they will take it to a new level of excellence," said Ed Pellegrini, Founder and Owner, Dandy Amusements International Inc.
"Under John's leadership, Dandy's offices and warehouse in California will act as the base of operations for our expansion in the west," said Joe McCullagh, Vice President and General Manager, Player One Amusement Group. "The addition of Dandy to our rapidly growing business in the US better positions us for continued growth and enhances our ability to provide amusement services to a much broader and expanded market across North America."
Headquartered in Toronto, Ontario, Player One Amusement Group employs over 450 people in 21 offices throughout Canada and the United States. One of North America's leading providers of interactive video, redemption and amusement gaming equipment, it specializes in solution servicing and design for a wide range of customers in the theatrical exhibition vertical as well as community-based entertainment destinations such as bowling centres, restaurants, arcades, shopping centres and water parks.
With pro forma revenue of approximately $15.0 million USD and pro forma adjusted EBITDA of approximately $3.2 million USD, the Dandy acquisition will be financed with cash-on-hand and existing credit facilities.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"). Those risks and uncertainties include: adverse factors generally encountered in the film exhibition industry such as poor film product and unauthorized copying; risks associated with national and world events, including war, terrorism and international conflicts; natural disasters or extreme weather conditions; infectious diseases; changes in income tax legislation; and general economic conditions. In addition, these risks and uncertainties include: the ability to achieve the expected synergies and the timing of same; the effectiveness of integration efforts and risks related to the satisfaction of the conditions to closing the transaction; and the related financing arrangements, including future general economic and market conditions and the associated debt and equity capital markets. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. All forward-looking statements in this press release are qualified by these cautionary statements. These statements are made as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. Additional information, including Cineplex's AIF, can be found on SEDAR at www.sedar.com.
Cineplex is one of Canada's leading entertainment companies and operates one of the most modern and fully digitized motion picture theatre circuits in the world. A top-tier Canadian brand, Cineplex operates numerous businesses including theatrical exhibition, food service, amusement gaming, alternative programming (Cineplex Events), Cineplex Media, Cineplex Digital Media, The Rec Room and the online sale of home entertainment content through CineplexStore.com and on apps embedded in various electronic devices. Cineplex is also a joint venture partner in SCENE – Canada's largest entertainment loyalty program.
Cineplex is headquartered in Toronto, Canada, and operates 164 theatres with 1,677 screens from coast to coast, serving approximately 75 million guests annually through the following theatre brands: Cineplex Cinemas, Cineplex Odeon, Cineplex VIP Cinemas, Galaxy Cinemas, SilverCity Cinemas and Scotiabank Theatres. Cineplex also owns and operates the UltraAVX, Poptopia and Outtakes brands. Cineplex trades on the Toronto Stock Exchange under the symbol CGX. More information is available at Cineplex.com.
For further information: Investor Relations contact: Pat Marshall, Vice President, Communications and Investor Relations, Pat.Marshall@Cineplex.com, 416-323-6648; Media Relations contact: Sarah Van Lange, Director, Communications, Sarah.VanLange@Cineplex.com, 647-287-9582