Sumner Redstone’s movie theater empire has been sold to a new buyer in a $30 million deal.
Harbor Lights Entertainment, the successor to National Amusements Inc., has sold its 13 movie theaters in the northeast and midwest to Kinepolis Group, the European theatrical exhibitor that is seeking to expand its U.S. presence.
Harbor Lights, which is controlled by the Ellison family and holds the preferred voting stock in Paramount Skydance, was created after David Ellison acquired National Amusements from the Redstone family last year. RedBird Capital owns a minority stake in Harbor Lights.
The 13 theaters, which operate under the Showcase Cinemas brand, are in Rhode Island, New York, Ohio, and Massachusetts, which of course is where Redstone first launched his media empire with a drive-in theater in Dedham. The deal significantly expands Kinepolis’ footprint in the U.S., which had been focused on Michigan.
The company says that Showcase theaters had more than $90 million in revenue and “achieved approximately break-even theatre-level cash flow” last year, and will continue to operate under that name.
“This acquisition allows us to expand our market position in the US from Michigan to the East Coast with an asset and a team that enable us to implement Kinepolis’ operational model and corporate strategy, ultimately enhancing the experience for moviegoers in these markets,” said Eddy Duquenne, CEO of Kinepolis Group, in a statement. “Furthermore, this acquisition provides a valuable real estate position, with future opportunities for further redevelopment and optimization being explored.”
LionTree Advisors is acting as financial advisor and Latham & Watkins LLP as legal counsel to Harbor Lights Entertainment. EY-Parthenon acted as financial advisor to Kinepolis Group, PwC as tax advisor, and Dentons as legal counsel.
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