Marcus Theatres, a division of U.S. movie theatres, hotels and resorts operator The Marcus Corporation, announced that it has signed an agreement to acquire the assets of Movie Tavern, a movie theater chain operator, from VSS-Southern Theatres, LLC, a portfolio company of private equity firm Veronis Suhler Stevenson.
The purchase price is currently valued at approximately $126 million, comprised of $30 million in cash and 2,450,000 shares of The Marcus Corporation common stock, subject to certain lock-up restrictions.
The Marcus Corporation said that the deal is another significant milestone in the growth trajectory of Marcus Theatres and expects this acquisition to be accretive to earnings, earnings per share and cash flow in the first twelve months following the closing of the transaction, and expects a smooth integration of Movie Tavern into its circuit.
Upon completion of the transaction, Marcus Theatres will own or operate a total of 1,098 screens at 90 locations in 17 states, representing a 23 percent increase in Marcus Theatres’ total screen count.