Denmark's largest cinema chain has entered into an agreement to purchase 49 percent of a cinema chain with four cinemas in southern Norway, thus further pursuing its growth strategy.
In the wake of last year's acquisition of Norway's largest cinema chain, Oslo Kino, and having taken over cinema operations in Ålesund, Nordisk Film Cinemas has now entered into a close partnership with the community of Kristiansand and purchased 49% of Kinosør AS holding four cinemas in southern Norway. Nordisk Film has thus consolidated its market-leading position in Norway, increasing its market share from 29% to 33% and running a total of 22 Norwegian cinemas.
Located in the southern Norwegian towns of Kristiansand, Arendal, Grimstad and Farsund, the four cinemas contain a total of 16 screens and 2,321 seats and approx. 500,000 admissions annually. The underlying company, KinoSør AS, employs a staff of 70 and generates annual revenue amounting to NOK 70 million.
'With an additional four cinemas in Norway and a one-third share of the cinema market, we have consolidated our position as the leading chain in Norway. Our aim is to continue expanding and strengthening our leading market position in both Norway and Denmark. Egmont and Nordisk Film believe in cinemas which have proven to be robust business even during times of crisis. We are exploring all opportunities for growth – including acquiring, establishing and leasing new cinemas,' says John Tønnes, CEO, Nordisk Film Cinemas.
The acquisition is the company's fifth expansion venture in Norway and Denmark within the past two years. During this period, Nordisk Film has acquired Oslo Kino, Norway, and Scala Bio in Nykøbing Falster, Denmark, and taken over the running of Ålesund Kino in Norway. The company has also launched the construction of a new multiplex in the Field's shopping centre in Ørestaden, Denmark.
Nordisk Film Cinemas is the largest cinema operator in Denmark, selling around six million tickets annually. The chain has cinemas in Århus, Aalborg, Randers, Nykøbing Falster, Herning, Esbjerg, Kolding, Næstved, Odense, Hillerød, Høje Taastrup, Frederiksberg, Lyngby and Copenhagen. Nordisk Film Cinemas also operates 22 cinemas in Norway and offers extensive online ticket booking services as well as activities for its cinema club members.
The chairman of the board of Kristiansand Kino Holding AS, Espen Saga, is satisfied with the agreement with Nordisk Film. 'We see Nordisk Film as a solid, long-term strategic business partner. The company has a sincere desire to contribute positively to expanding the film services offered in the region,' he says.
A due diligence process will be conducted in the course of the summer. The sale is expected to be finally approved by Kristiansand City Council in September. The purchase price will not be made public.