Doughty Hanson to buy Vue for £450m

The management team, which currently owns 51% of the business, will be reinvesting alongside Doughty Hanson.

The private equity house was attracted by Vue's performance despite the downturn, its reputation for customer satisfaction and its approach to developing and marketing new products to drive growth. It also believes 3D filmmaking will ensure strong development prospects for the coming years.

The cinema chain is also said to be looking to grow by acquiring its UK competitors Cineworld and the Odeon & UCI group.

Bank of Scotland Corporate, through its Integrated Finance Team, backed the management buyout of Vue Entertainment in 2006. The deal valued the company at £350m. Vue was part of the BOSIF portfolio sold earlier this year by Lloyds to Cavendish Square Partners, a new structure jointly owned by Coller Capital.

Tim Richards founded SBC International Cinemas in 1998 with backing from Boston Ventures. It then acquired the Warner Village Cinema chain in 2003 to become Vue Entertainment. Further acquisitions followed, including the purchase of Ster Century in 2005 for £50m. The company now operates a total of 68 cinemas, including two in Portugal and Taiwan.

The unquote" team is currently researching this transaction. In-depth deal information for subscribers will follow shortly.

If you have any information regarding this transaction, please contact Grégoire Gille on +44 20 7484 9824 or gregoire.gille@incisivemedia.com

 

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