Belgian movie operator Kinepolis has officially wrapped up its purchase of Emagine Entertainment, the Midwestern theater chain known for its luxury recliners across Michigan and neighboring states. The deal, which closed in February, shifts a slate of Emagine locations into Kinepolis' hands, while executives say customers and staff should see business as usual. Crain's Detroit Business reports the final sale price landed at $111.5 million after a post-announcement adjustment.
Deal details and scale
In a Feb. 12 press release, Kinepolis said it has completed the acquisition of Emagine's operations, adding 14 cinemas with a combined 177 screens and roughly 18,000 seats across Michigan, Illinois, Indiana and Wisconsin. The company said Emagine draws about 6 million visitors each year and generates nearly USD 129 million in revenue. The original agreement, announced in November, called for a $105 million purchase price with an additional potential earn-out of up to $15 million tied to U.S. box-office performance, according to Kinepolis.
Which theaters are changing hands
Nine Michigan locations are included in the deal, with Emagine sites in Saginaw, Birch Run, Novi and Royal Oak among those now under Kinepolis' umbrella, along with venues in Illinois, Indiana and Wisconsin. Not every Emagine-branded theater is part of the sale, however. Several Minnesota and Colorado locations operate under separate licensing agreements and were left out of the transaction. For a rundown of the affected Michigan sites, see Hoodline coverage of the Michigan theater shakeup.
Price, earn-out and advisers
Local reporting now pegs the final deal value at $111.5 million, roughly $6.5 million more than the initially announced $105 million, after adjustments connected to box-office performance. Emagine's sell-side advisor on the transaction was EFA Partners, which said it managed the sale process and advised company leadership during negotiations. Crain's Detroit Business also reports that Clark Hill PLC served as legal counsel to Emagine, while Honigman LLP represented Kinepolis, and that two downtown Birmingham theaters are still subject to liquor-license transfers and lease assignments.
Leadership and lingering conditions
Paul Glantz, Emagine's chairman emeritus and a significant shareholder, will stay involved as a brand ambassador. He told Crain's Detroit Business in an email that he is "confident the Birmingham matters will be concluded satisfactorily." His comments come as the new ownership works through final local approvals and lease details for the downtown Birmingham locations. The outcome of those transfers will dictate the timing of when ownership of those two sites fully changes hands.
What moviegoers can expect
Kinepolis says it plans to keep operating the acquired locations under the Emagine name and is emphasizing continuity for both customers and employees as it integrates the circuit. "This acquisition strengthens Kinepolis’ presence in the United States," the company said, adding that it looks forward to welcoming the new teams into the Kinepolis family. For the full statement, see the press release from Kinepolis.
.jpg){kind=link}