Click here for printer friendly page

Cinven sells Odeon cinemas for £431m to WestLB-led syndicate

European private equity firm Cinven has sold Odeon Cinemas to a syndicate of investors led by WestLB for £431m. The transaction reinforces the prevailing trend for secondary buy-outs to provide liquidity for private equity firms.

Richard Munton, a director at Cinven, said: ‘We are clearly delighted that the management team has delivered on this business plan with consequent positive effects on the financial performance of the business. Odeon has been a very successful investment for us and we with the company well for the future.'

Cinven bought Odeon from the Rank Group in February 2000 and merged it with its existing investment in ABC Cinemas. It then financed a £75m modernisation, refurbishment and new-build program.

The scarcity of trade buyers and the poor health of public markets have left secondary buy-outs as one of the only exit routes available to private equity houses. 

Copyright © 2003 AltAssets