Doughty Hanson, a European private equity firm, is to acquire Vue Entertainment, a UK developer and operator of multiplex cinemas, from Cavendish Square Partners, affiliated investment funds of Och-Ziff Capital Management Group and the existing management team.
The Vue management team, including chief executive Tim Richards who established the company, will be reinvesting in the transaction.
Vue has the third largest market share in the UK in terms of box office via its 68 cinemas and 678 screens. The company also runs two cinemas internationally.
Vue recently announced that it will be working with Sony Digital Europe on the rollout of 4,000 projectors across Vue’s cinema portfolio, which is set to be completed by 2012.
Julian Huxtable, senior principal at Doughty Hanson, says: “Vue Entertainment is a great company led by an exceptional, highly experienced management team which has created a strong market position for the company with an exciting future ahead. Vue has an excellent reputation for its high quality customer experience and its innovative approach of developing and marketing new products and services designed to grow the business and customer base.”
Richards adds: “Doughty Hanson is an ideal partner for Vue, as it shares our vision of driving attractive growth and investment returns by consistently delivering an excellent entertainment experience for our customers.”
