November 20, 2017

PVR acquires stake in American theatre chain iPic


PVR Ltd, India’s largest multiplex chain is to buy a minority stake in US-based luxury restaurant and theatre company iPic Gold Class Entertainment LLC to mark its first-ever overseas acquisition. The company said that the move will help PVR get access to the US cinema exhibition market and as part of the agreement; iPic has also agreed to appoint PVR chairman and managing director Ajay Bijli to its board of directors

However, the company neither disclosed the deal amount nor the stake it would pick up in the US firm.

iPic owns and operates 16 luxury theatres and 121 screens across 10 states in the US. Its new facilities claim to blend three distinct areas – polished-casual restaurants, farm-to-glass full-service bars and world-class luxury theatre auditoriums.

Earlier this year, the Indian multiplex chain had raised Rs 820 crore ($120.4 million) from private equity firm Warburg Pincus. The transaction allowed its existing institutional investor, Multiples Alternate Asset Management, to make a partial exit.

PVR has acquired several companies, including Cinemax and DT Cinemas in 2012 and 2016, respectively. Currently, the company operates 600 multiplex screens across 131 properties in 51 cities. In 2016-17, PVR reported revenues of Rs 2,002 crore and has a market capitalisation of Rs 6,625 crore.

PVR is, however, not the first Indian company in this segment to acquire a stake in a foreign company.

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