Belgian movie theater group Kinepolis has struck a deal with its competitor Utopolis about a possible acquisition. Utopolis currently has 13 movie theaters in 4 countries, adding mostly to Kinepolis's market share in Belgium and the Netherlands.
Luxembourg is new market
The merger mainly affects Kinepolis' home territory, Belgium. Market leader Kinepolis will add 4 new movie theaters to its existing 11 there. It will also expand its French presence from 8 to 9, its Dutch presence from 9 to 14 and the Grand Duchy of Luxembourg will become its seventh market in total.
Last year, Utopolis welcomed 3.4 million visitors and generated 41 million euro in turnover. Kinepolis on the other hand welcomed nearly 20 million visitors and generated 263 million euro in 2014.
"The intended Utopolis acquisition fits Kinepolis Group's expansion strategy, which is to strengthen its position in France and the Netherlands, while adding a new geographical market thanks to Luxembourg", Kinepolis said in a press release. Things are not finalized yet, as both parties still have to discuss the finer points of the deal, including due diligence.
Earlier this week, Kinepolis had already unveiled its acquisition of the French Mégaroyal movie theater in Bourgoin-Jailleu and the construction of a new movie theater in Brétigny-sur-Orge.