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Movie theater operator Regal Entertainment Group (NYSE:RGC) agreed to purchase seven theaters for $31 million.

The seven theaters with 76 screens are located in Maryland, Florida, Pennsylvania and Virginia. The purchase price represents $4.4 million per theater, or $408,000 per screen.

Quick comments: We can expect to see Regal make more small acquisitions like this one. As a reminder, below are some comments from Regal's recent quarterly conference call regarding acquisitions:

… Related to specific acquisitions, we do believe that there are opportunities still in the marketplace. Clearly some of the larger circuits that might have been considered targets during the past year or two are not in play currently. But we believe that there are several opportunities remaining out there for consolidation with smaller regional players that have quality assets. And we have an ongoing dialog at any given time to bring those opportunities to the surface.

(Quotes from the CCBN StreetEvents transcript.)


Source: Regal Entertainment (RGC) acquires new theaters