06/12/2012 - Deal for 60-screen independent cinema group worth £47.3 million

The UK’s leading mainstream cinema chain, the Cineworld Group, has acquired the country’s foremost independent cinema operator the City Screen Group that trades under the Picturehouse brand, for £47.3 million. Picturehouse has 60 screens at 21 sites. As part of the deal, Cineworld has also acquired Picturehouse Entertainment, the distribution arm of City Screen. Picturehouse will operate as a separate business entity within the Cineworld Group and will continue to be run by the existing Picturehouse management team.

Stephen Wiener, Chief Executive Officer of Cineworld, said, “We are delighted to welcome Picturehouse to the Cineworld Group. This acquisition gives us an opportunity to accelerate our growth by reaching new audiences in a high value and growing part of the market. We recognise that Picturehouse is valued by its customers and we look forward to supporting the business through the next phase of its development.”

Picturehouse founder director Lyn Goleby, who will continue in her role as Managing Director said, “The opportunity to be part of a public company is great news for Picturehouse and our customers. We are known for our high quality city centre cinemas and our distinctive, wide-ranging programming. The unique character of Picturehouse cinemas will remain and our team will continue to bring the widest range of film to customers. This acquisition by Cineworld will accelerate the development of further Picturehouse cinemas around the country.”

For the year ended 31 December 2011, Picturehouse reported profit before tax of £2.5 million. This year, Picturehouse is expected to generate profits of approximately £5 million.