MILWAUKEE--(BUSINESS WIRE)--Marcus Theatres®, a division of The Marcus Corporation (NYSE:MCS), today announced it has signed an agreement to acquire the assets of Wehrenberg Theatres®, based in St. Louis, Missouri. Terms of the transaction were not disclosed.
Wehrenberg Theatres is the oldest family-owned and operated theatre circuit in the United States, with 197 screens at 14 locations in Missouri, Iowa, Illinois and Minnesota. Upon completion of the transaction, Marcus Theatres will increase its number of screens by 29%, operating 885 screens at 68 locations in eight states.
The transaction is targeted to be completed in December 2016, subject to customary closing conditions, consents and approvals.
“Acquisitions are an important component of our growth strategy and we are pleased to add the Wehrenberg Theatres locations to our circuit. The acquisition demonstrates our continued confidence in our theatre business. It will expand our presence in Iowa, Illinois and Minnesota and extends our footprint into Missouri,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation. “We anticipate a smooth integration of Wehrenberg Theatres into our circuit and expect the acquisition will be accretive to both earnings and cash flow.”
Rolando B. Rodriguez, president and chief executive officer of Marcus Theatres, said, “Wehrenberg Theatres is highly respected in the industry, having served generations of moviegoers in four states with its premium service and strong family values. We will retain the Wehrenberg name on the acquired theatres. In addition, we look forward to working with the company’s associates to continue the tradition of excellence built by the Wehrenberg family. Once the transaction is completed, we plan to enhance the moviegoing experience at select theatres with features and amenities including our DreamLoungerSM recliner seating, premium large-format screens and signature food and beverage concepts.”
The late Ronald P. Krueger inherited Wehrenberg Theatres in 1963 at the age of 22. Ron and his wife, Midge, operated the chain for many years and were very active in the St. Louis community. They strongly supported charities such as Will Rogers Foundation, Variety – The Children’s Charity of St. Louis, The Salvation Army, Shriners Hospital for Children and many others.
“We are pleased Marcus Theatres will carry on the dedication to our customers and communities that has been a hallmark of Wehrenberg Theatres since 1906. Our two companies share the same philosophy – providing customers with the best entertainment experience possible. We were fortunate to find another family-led circuit which also understands the extra commitment it takes to serve our neighborhoods,” said William E. (Bill) Menke, president of Wehrenberg Theatres.
The 14 Wehrenberg Theatres locations include nine in the Greater St. Louis area; one each in Cape Girardeau and Lake Ozark, Missouri; one in Cedar Rapids, Iowa; one in Rochester, Minnesota; and one in Bloomington, Illinois. In conjunction with the acquisition, Marcus Theatres will acquire the underlying real estate for six of the theatre locations, as well as Ronnie’s Plaza, an 84,000 square foot retail center located at 5320 S. Lindbergh Blvd. in St. Louis.
Marcus Theatres was assisted in the transaction by Peter J. Solomon Company, while advisors for Wehrenberg Theatres were The Fortune Group.
About Marcus Theatres
Marcus Theatres®, a division of The Marcus Corporation, is the fifth largest theatre circuit in the United States and currently owns or operates 688 screens at 54 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. For more information, please visit www.marcustheatres.com and follow the company on Facebook and Twitter (@Marcus_Theatres).
About The Marcus Corporation
Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. In addition to its Marcus Theatres division, its lodging division, Marcus® Hotels & Resorts, owns and/or manages 18 hotels, resorts and other properties in nine states. For more information, please visit the company’s website at www.marcuscorp.com.
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 adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, impairment losses, and preopening and start-up costs due to the capital intensive nature of our businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or other incidents of violence in public venues such as hotels and movie theatres. 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.