Cineplex Acquires Dandy Amusements International Inc.; Player One Is Now Positioned For Expansion In Western U.S.

Posted On: 3/10/2017

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TAGS: Cineplex, Cineplex's Dandy acquisition, Dandy Amusements International Inc., Player One Amusement Group, Ellis Jacob, John Lemieux, Ed Pellegrini, coin-op amusements, arcade games

Dandy is Cineplex's third acquisition of a U.S.-based amusement services and game machine provider in past six months

TORONTO -- Canada's Cineplex announced today that it is acquiring all of the assets of Dandy Amusements International Inc. Upon completion of the transaction, which is anticipated to take place in April, Dandy will become part of Cineplex's Player One Amusement Group. Financial terms were not disclosed.

"With Player One, we remain focused on scaling our U.S. operations through new and existing customer development, segment expansion, and strategic mergers and acquisitions like this one," said Cineplex president and chief executive Ellis Jacob. "Dandy is well-known in the industry as a leading amusement gaming machine operator in the western United States."

Jacob added that the acquisition of Dandy strengthens Cineplex's ability to service customers on a "truly North American scale." Dandy operates in the amusement route segment, mostly in the western United States. Its business is concentrated in California, Arizona, Washington and Texas.

Based in Simi Valley, CA, Dandy's client portfolio focuses on the theatrical exhibition vertical, offering a mix of amusement equipment that is consistent with Player One's existing product portfolio. The acquisition reinforces Player One's already strong U.S. market position by adding more than 50 employees to the team. John Lemieux, who has been with Dandy for 25 years, will now lead western operations for Player One. Dandy's office and warehouse in California will act as the base of operations for Player One' expansion in the West.

Amusement industry veteran Ed Pellegrini is a founder and owner of Dandy. "I am very pleased to be selling my business to a company that is so committed to the amusement gaming industry as I believe they will take it to a new level of excellence," he said.

Player One Amusement Group, a wholly owned subsidiary of Toronto-based Cineplex, is an amalgamation of five amusement vending companies (Cineplex Starburst, Brady Starburst, Premier Amusements, SAW and Tricorp Amusements). It employs more than 450 people in 21 offices in Canada and the U.S.

With pro forma revenue of approximately $15 million USD and pro forma adjusted EBITDA of approximately $3.2 million USD, the Dandy acquisition will be financed with cash-on-hand and existing credit facilities.