Cineplex has disclosed its contemplation of a potential sale while announcing Bill Walker, former head of Landmark Cinemas, as its new CEO. The company’s board is optimistic about its future but is exploring various options to enhance shareholder value through a Strategic Review process. This review includes considering a potential sale among other alternatives.
Goldman Sachs and TD Securities have been appointed as co-financial advisers for the strategic review. Cineplex, known as the largest cinema chain in Canada, operates over 1,600 movie screens in nearly 170 theaters nationwide, employing over 10,000 individuals in its entertainment venues.
In 2019, Cineplex was in discussions for a $2.8 billion acquisition by the U.K.-based Cineworld Group PLC, which, however, did not materialize. Former CEO Ellis Jacob will be assisting the board as a special adviser during the strategic review.
Phyllis Yaffe, chair of Cineplex’s board, highlighted the company’s strong market position and its portfolio of premier entertainment assets. Walker, who previously led Landmark Cinemas and facilitated its sale to Kinepolis in 2017, expressed support for the strategic review. He emphasized his commitment to driving operational excellence, ensuring exceptional guest experiences, and delivering superior outcomes for shareholders regardless of the review’s conclusion.