Regal to buy Hollywood Theaters for about $191M
KNOXVILLE, Tenn. (AP) — Regal Entertainment Group said Tuesday that it reached a deal to buy Hollywood Theaters for about $191 million in cash.
The acquisition also includes $47 million of assumed lease obligations and certain working capital. And the cash to be paid includes the repayment of about $157 million of Hollywood Theaters' debt, Regal said.
The Knoxville, Tenn.-based movie theater owner said the deal includes 43 theatres with 513 screens 16 states and three U.S. territories. Regal said it expects the acquisition to boost its cash flows and profits. It's expected to close in the second quarter.
Moody's Investors Service said later on Tuesday that it doesn't expect the move to significantly affect the credit profiles of either company. The ratings service backed its speculative corporate family ratings for both companies, with a "B1" rating for Regal and a "Caa1"rating for Hollywood.
Regal shares rose 50 cents, or 3 percent, to $15.83 in afternoon trading.