In a landmark move signaling strong confidence in the cinema industry’s recovery and future growth, Kinepolis Group (Euronext: KIN) announced today that it has reached an agreement to acquire the operations of the U.S. movie theatre chain Emagine Entertainment. Expected to close by the end of 2025, this acquisition marks Kinepolis’s first major expansion of this scale since the pandemic and significantly boosts its presence in the American market.
A High-Quality Asset for Strategic Expansion
The agreement brings 14 premium cinemas into the Kinepolis portfolio, adding 177 screens and 18,000 seats across four key states in the U.S. Midwest: Michigan, Illinois, Indiana, and Wisconsin. Emagine Entertainment boasts impressive operations, welcoming approximately 6 million visitors per year and generating nearly USD $129 million in annual revenue.
The core appeal of the Emagine locations lies in their commitment to a superior guest experience. All acquired cinemas are equipped with luxury recliner seats and feature Emagine’s proprietary Premium Large Format (PLF) concepts:
- EMX: Offers a massive wall-to-wall screen paired with 4K laser projection and the immersive audio experience of Dolby Atmos.
- Super EMX: Takes the experience even further with an even larger screen and 64-channel Dolby Atmos sound, providing one of the most technologically advanced cinema experiences available.
A Vision for Continued Excellence
This strategic move was met with enthusiasm from both company leaderships.
Eddy Duquenne, CEO of Kinepolis Group, hailed the deal as a major accomplishment: “Today’s announcement marks a key milestone in our company’s expansion – the first acquisition of this scale since the pandemic. We do this with a high-quality asset in a market where we have had positive experiences with our Kinepolis concepts… The location and size of the cinemas make them a valuable addition to the Group’s portfolio, enabling us to further expand our presence in the US market. We are excited to welcome the new teams to the Kinepolis family.”
Paul Glantz, Chairman and CEO of Emagine Entertainment, echoed the sentiment, assuring patrons and employees that the legacy of quality will continue: “Kinepolis has a reputation for operating exceptionally well-run cinemas both in Europe and in North America. Their commitment to providing guests with an unforgettable movie experience makes them the ideal suitor to continue the stewardship of Emagine into the future.”
Continuity is Key
The transaction is valued at USD $105 million for 100% of Emagine’s business operations, with a potential earn-out of up to USD $15 million tied to the growth of the US Box Office during 2025. The acquisition will be financed through an incremental facility of EUR 100 million under Kinepolis’s existing credit facility.
Crucially, Kinepolis has committed to operating the theaters under the existing Emagine brand name. The company prioritizes continuity for all Emagine customers, ensuring the beloved movie-going experience remains unchanged while carefully considering the needs of all employees and stakeholders as the integration moves forward towards its expected completion at the end of 2025.
