Firm agrees to purchase Hollywood Theaters

Knoxville, Tenn.-based Regal Entertainment Group (NYSE: RGC) this week entered an agreement to acquire Portland, Ore.-based Hollywood Theaters.

Regal would pick up 43 theaters with 513 screens in 16 states and three U.S. territories, including College Station Stadium 14 in downtown Springfield and Northstar 14 in Joplin.

The purchase includes $191 million in cash - approximately $157 million of which would repay the sellers' debt - and roughly $47 million to assume lease obligations, according to a news release.

“We expect the acquisition of Hollywood Theaters to be accretive to cash flows and earnings and are pleased to announce an agreement to purchase these high quality assets,” Regal CEO Amy Miles said in the release. “Accretive acquisitions are a key component of our overall business strategy and we look forward to a successful closing and integration of the Hollywood Theater assets during the second quarter."

Regal Entertainment Group comprises Regal Cinemas, United Artists Theatres and Edwards Theatres, operating 6,880 screens in 540 theaters across 38 states and Washington, D.C. The company does not currently operate any theaters in Missouri, according to RegMovies.com.

Regal posted 2012 earnings of $144.7 million, up 261 percent from $40.1 million in 2011, according to a financial filing. As of 9:50 a.m., the company's shares were trading at $15.71, compared to a 52-week range of $12.74 to $16.30.

Hollywood Theaters opened College Station Stadium 14 in October 2008 as the anchor tenant for the downtown development. College Station has remained largely vacant, with only the Hamels Foundation moving in. Adjacent to the development, Craig Wagoner is building College Station Loft Building, a 26,000-square-foot apartment complex that would connect to the city-owned parking garage off of South Campbell Avenue.[[In-content Ad]]