Ratos, the private equity firm and Bonnier the publishing giant has agreed to the merger of their cinema chains Finnkino and SF Bio respectively. The new merged entity would become the largest cinema service provider in the region.
According to Ratos CEO Susanna Cambell, "We're building the region's biggest cinema group where strong local brands combine to be even more competitive."
The deal's specifics would have Ratos owning a 60% stake in the new venture, worth about 3.0 billion Swedish crowns or US$468.85 million. Bonnier on the other hand would retain 40% of the venture. There would be no capital outlay from Bonnier or from Ratos. The projected revenue from the combined cinemas would be at 2.6 billion crowns while the operating profit post merger is expected to be at 360 million Swedish crowns. The two companies reiterated their support for the merged cinema's growth in its current markets as well as forward expansion in the future.
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