Cinemas could be the big deal in 2013

Private equity investments in European cinemas

Anneken Tappe
07 January 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

While Terra Firma is considering getting out of the movie business, its private equity competitors could see some very attractive investment opportunities this year.

The past decade has seen a very pronounced fluctuation in investments in movie theatres, with 2003 and 2004 in particular both recording more than €1bn in deal value. A number of big private equity players, including Blackstone, BC Partners and Doughty Hanson, hold or have held movie theatres in their portfolios over the years.

In 2012, the segment grew quiet. The only deal recorded was Albion Ventures' sale of Picturehouse to Cineworld for £12.5m.

Yet, unquote" reported promising news in the first two weeks of 2013. Swedish media and publishing company Bonnier is looking to sell its SF cinema chain, which operates throughout Sweden and Norway. Swedish private equity buyer Ratos, which already owns the Finnish movie theatre operator Finnkino, is expected to be a bidder in the Nordea-run sale. Valuations for SF cinemas could reach SEK 2bn.

Now, rumour has it that Guy Hands' Terra Firma is looking to exit Odeon UCI. The chains were acquired separately and merged in 2004. A sale could yield up to £1bn for the GP.