European operator to buy Emagine theaters, many in Michigan

A European theater chain, Kinepolis Group, is acquiring the Troy-based Emagine Entertainment.
The deal is valued at $105 million and is expected to be finalized by the end of the year.

The European movie theater company that previously bought metro Detroit’s MJR cinemas is now buying Emagine Entertainment.

The Kinepolis Group, a Belgian firm, announced on Tuesday, Nov. 4, that it plans to acquire 14 Emagine theaters in Michigan, Illinois, Indiana and Wisconsin and finalize the $105 million deal by the end of the year.

The deal is for 100% of Emagine’s business, according to a news release, and the theaters will continue to operate under the Emagine brand name.

Not all of the 28 theater locations listed on Emagine’s website are included in the deal, as about half are operated by third parties.

Kinepolis previously acquired MJR Digital Cinemas chain in 2019 and has continued to operate those 10 theaters under the MJR name. That deal marked the firm’s entry into the U.S. market; it now operates in seven European countries, plus the United States and Canada.

“Kinepolis has a reputation for operating exceptionally well-run cinemas both in Europe and in North America,” Paul Glantz, chairman and CEO of Emagine, said in the news release. “Their commitment to providing guests with an unforgettable movie experience makes them the ideal suitor to continue the stewardship of Emagine into the future.”

Crain’s Detroit reported that Glantz and his family own about 36% of Troy-based Emagine. Glantz was not available for additional comment Tuesday morning.

“With the acquisition of Emagine Entertainment, we are back on track with the execution of our expansion strategy since the pandemic,” Eddy Duquenne, CEO of Kinepolis Group, said in the release. “We do this with a high-quality asset in a market where we have had positive experiences with our Kinepolis concepts. The location and size of the cinemas make them a valuable addition to the Group’s portfolio, allowing us to expand our presence in the US market and strengthen our national structure.”

The news release says Emagine’s theaters see about 6 million visitors a year and do nearly $129 million in revenue. The size of the $105 million deal could go up an additional $15 million, based on box office results through the rest of the year.

Michigan theaters not included in the deal are The Riviera Cinema in Farmington Hills and Emagine Woodhaven, which are managed by third parties through a brand licensing agreement, the news release said.

In a phone interview Tuesday afternoon, Duquenne told the Free Press that Emagine’s theaters are well run and profitable and that no significant changes are envisioned.

Kinepolis was attracted to the high quality of the Emagine brand and its theaters compared with competitors, he said.

“Why should you rebrand if you have a good brand that everyone is familiar with,” Duquenne said. “We will bring more capital into the market, as well as invest in more premiumization.”