Press release from Marketwire
New Way Games Sales Ltd and Starburst Coin Machines Inc. Merge to Create New Amusement Game Business-Cineplex Starburst Inc.
Tuesday, January 31, 2012
New Way Games Sales Ltd and Starburst Coin Machines Inc. Merge to Create New Amusement Game Business-Cineplex Starburst Inc.16:10 EST Tuesday, January 31, 2012TORONTO, ONTARIO--(Marketwire - Jan. 31, 2012) - Cineplex Entertainment (TSX:CGX) ("Cineplex") announced today it has merged its recently acquired subsidiary, New Way Sales Gaming ("NWS"), with the amusement game and vending assets of Toronto-based Starburst Coin Machines Inc., ("SCMI"). The new joint venture, named Cineplex Starburst Inc., will form the largest distributor and operator of arcade games to the amusement industry in Canada. Cineplex Entertainment LP and SCMI will equally own Cineplex Starburst Inc. and the company will be led by the existing President of SCMI, Len Keywood. Cineplex's additional cash investment in the transaction is estimated to be approximately $4.5 million.SCMI has supplied and serviced the arcade games located within all of the original Famous Players brand theatres for many years. They also supply equipment to numerous arcades, amusement centers, bowling alleys, amusement parks and theatre circuits, in addition to owning and operating Playdium, the Family Entertainment Centre located in Mississauga, Ontario. NWS has supplied and serviced the equipment located within Cineplex Odeon and Galaxy Cinemas in addition to a number of other businesses. Following the merger, Cineplex Starburst Inc., will supply and service all Cineplex Entertainment theatres across Canada and continue to supply and support numerous other third parties."This transaction will improve the operating margins within our current amusement game business and also improve the quality and variety of games available to our guests," said Ellis Jacob, President and CEO, Cineplex Entertainment. "Merging the two companies together makes them stronger and will enable more opportunities for future growth as this business evolves.""Starburst has had a long standing relationship with Cineplex," said Len Keywood, President, Starburst Coin Machines Inc. "Combining our businesses provides a great opportunity to leverage each other's strengths and I look forward to working together to grow the business and develop new opportunities."About Cineplex EntertainmentCineplex Inc. ("Cineplex") is the largest motion picture exhibitor in Canada and owns leases or has a joint-venture interest in 130 theatres with 1,352 screens serving approximately 70 million guests annually. Headquartered in Toronto, Canada, Cineplex operates theatres from British Columbia to Quebec and is the exclusive provider of UltraAVX™ and the largest exhibitor of digital, 3D and IMAX projection technologies in the country. Proudly Canadian and with a workforce of approximately 10,000 employees, the company operates the following top tier brands: Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres. Cineplex shares trade on the Toronto Stock Exchange (TSX) under the symbol "CGX". For more information, visit www.cineplex.com.About Starburst Coin Machines Inc. ("SCMI")SCMI was established in 1975 by owner Len Key wood. With over 175 employees, it is the premier national amusement company that is able to service all provinces from coast to coast. SCMI is fully diversified in the amusement machine business such that it has manufacturing capabilities, games and parts sales, repair and rental services and national route operations. SCMI's head office is located in Toronto, Ontario with additional offices in Ottawa, Hamilton, London, and Montreal, Quebec. SCMIFOR FURTHER INFORMATION PLEASE CONTACT: Pat MarshallCineplex EntertainmentVice President, Communications and Investor Relations416firstname.lastname@example.org