Pep Focuses On Big Picture With More Imax Theatres
Saturday July 12, 2008
PACIFIC Equity Partners, the private equity owner of Hoyts cinemas, plans to open four Imax theatres in Australia over the next 18 months - its first big investment since buying the business from James Packer's Publishing & Broadcasting and West Australian Newspapers last year.
The firm has entered a joint venture with Canada's Imax Corp to install giant digital movie screen theatres in Sydney's Entertainment Quarter as well as in Melbourne and Perth later this year, with another one to follow in Melbourne next year.The first three theatres are set to open with the Imax launch of Harry Potter and the Half-Blood Prince in December.It is the first time Imax has sought an international partner for its expansion, aimed at boosting its market position as the movie industry moves toward digital technology. In the US the company has teamed up with the biggest cinema chain, Regal Entertainment, to set up 31 Imax systems in 20 cities.PEP's managing director, Simon Pillar, was unavailable to say how much the buyout firm would spend on the new theatres. Both sides will share investments and profits from the joint venture.The deal comes 10 months after PEP acquired Hoyts for $440 million, including $140 million in debt. The company has postponed plans to turn the cinema chain and its advertising digital in the first half of this year amid a protracted tug-of-war between the cinema industry and Hollywood studios. Theatre owners are seeking compensation for their costs to install digital projectors, estimated at $100,000 a screen, which will let distributors save money by allowing them to distribute their movies digitally, rather than on film prints.Mr Pillar has previously indicated that PEP would make a "reasonably sized investment" to grow Hoyts's business after two years of disappointing results.
© 2008