TORONTO -- Cineplex Entertainment said it will acquire Toronto-based New Way Sales Games Ltd. for $3.3 million from Roynat Capital Inc. and Knight's Bridge Capital Partners Inc. The deal is expected to close by the end of May.
New Way is one of Canada's largest amusement equipment distributors and suppliers. Cineplex is the country's largest motion picture theater owner-operator. After the acquisition is completed, New Way will continue to provide amusement machines services to Cineplex and other third parties.
New Way sells new, used and reconditioned games to arcades, family entertainment centers, bowling alleys, amusement parks and theater circuits. It also operates three FECs in Alberta's West Edmonton Mall, the largest indoor shopping complex in North America and the fifth largest in the world.
Cineplex said New Way now provides games for all Cineplex Odeon and Galaxy Cinemas, representing over half of the locations within the Cineplex circuit. Cineplex controls, through ownership or lease arrangements,130 theatres comprising 1,352 screens serving approximately 70 million guests annually.
Roynat is a wholly owned subsidiary of Scotiabank, the third-largest bank in Canada, which bills itself as "Canada's International Bank." Knight's Bridge Capital Partners is a diversified private equity manager and a subsidiary of Counsel Corp.
New Way, previously known as Janda Products Canada Ltd,, was purchased by RepeatSeat in 2007, with financing from Roynat and Knight's Bridge. When Janda and RepeatSeat both filed for bankruptcy in 2009, the financiers took over the dealership.