MARCUS THEATRES® TO PURCHASE MESCOP FILM BUYING BUSINESS
Published On: Friday, December 21, 2012
Milwaukee, Wis., December 10, 2012. . . . . Marcus Theatres®, a division of The Marcus Corporation (NYSE:MCS), today announced that it has signed an agreement to purchase MESCOP, Inc., a film buying and booking business located in Sussex, Wis.
Under the agreement, Marcus Theatres will perform film buying services for 14 exhibitors with 75 screens at 20 locations in three Midwestern states. Services will include film buying, booking and other related responsibilities and management services. Marcus Theatres currently books films for its 687 owned and managed screens, as well as an additional 146 screens operated by other owners. Including the MESCOP locations, Marcus Theatres will provide film buying services for a total of 908 screens.
MESCOP was founded in 1971 by Fred Florence. The company is currently operated by his son, James Florence, who will retire upon completion of the sale.
“We are pleased to further expand our film buying services with the addition of the MESCOP locations. This is a win-win for everyone and we look forward to working with the MESCOP exhibitors,” said Paul Silk, senior vice president of film for Marcus Theatres.
“These locations are a natural fit for us within our Midwestern footprint. We know the markets well and will utilize our programming expertise to meet the needs of these audiences,” said Jeff Tomachek, executive vice president of Marcus Theatres.
James Florence said, “Marcus Theatres is a highly respected circuit that has been in business for more than 75 years. I know that my exhibitors and their customers will benefit from the experience of the Marcus Theatres film department and its well-established relationships with the film studios.”
The purchase is expected to close prior to year end. Terms of the transaction were not disclosed.
Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements include words such as we “believe,” “anticipate,” “expect” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which may cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, and preopening and start-up costs due to the capital intensive nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (5) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions in our markets; (7) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (8) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or incidents such as the recent tragedy in a movie theatre in Colorado. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.