Vue Entertainment Announces Management Buyout
LONDON--June 20, 2006--Vue Entertainment, the UK's leading developer and
operator of state-of-the-art cinemas, today announced a management buyout in
partnership with Bank of Scotland Corporate, through its Integrated Finance
Team. The Bank has backed the incumbent management team, led by CEO Tim
Richards, in a deal valued in the region of GBP 350 million and is taking a
minority stake in the business. This transaction sees the sale of the
shareholdings of previous investors Clarity Partners, Boston Ventures, and Legal
& General Ventures to Vue Entertainment and Bank of Scotland with Vue's
management team holding a controlling 51% of the company.
The buyout will allow management to continue with the growth of their
business which over the past 2 years has seen the Company's market share of the
UK and Irish box office increase to over 20%. Vue's circuit has now reached a
landmark of 55 cinemas with 544 screens and 126,351 seats which attract over 30
million customers per annum.
Simultaneously, Vue is also acquiring the five new Village Roadshow multiplex
cinemas in the UK. Expansion continues with four new sites due to open later
this year in Swansea, Cleveleys, Exeter and Lancaster. These initiatives follow
Vue's acquisition of the Ster Century cinema chain in May 2005 and reinforce the
company's commitment to further growth that will see the opening of an
additional 10 new state-of-the-art multiplexes over the next 2 to 3 years.
Commenting on the completion of the transaction, Tim Richards, CEO of Vue
said: "This is a landmark event for Vue Entertainment and is a goal that we have
been working toward for some considerable time. With the backing of our previous
investors, we enjoyed exponential growth and are now in strong position to take
the business forward with our new partners Bank of Scotland Integrated Finance.
We are poised to realise our further ambitions for Vue, to ensure the company
goes from strength to strength, complemented by our strong team and our mission
to deliver the best cinema entertainment experience in the UK."
"We have seen the management team take this company from four sites at the
time of our investment decision, to become one of the biggest and we believe the
best company in the industry," said Barry Porter, Managing General Partner of
Clarity Partners. "Clarity and our limited partners are proud to have been part
of building a company that has transformed and improved the cinema-going
experience in the UK. We are confident that management will enjoy continued
success in the next chapter of this exciting story."
Boston Ventures remarked: "As the founding investors of Vue, we are proud to
have partnered with Tim Richards and his talented team to build the highest
quality brand in the UK cinema market. At the outset, our joint mission was 'to
make the best better' and that goal was reached in a truly collaborative
fashion. The entire Boston Ventures team extends their thanks and best wishes
for continued success."
Bill Priestley, Managing Director of Legal & General Ventures commented: "The
Vue management team has successfully integrated three estates to form the best
quality cinema portfolio in the UK and we wish them every success in the
The deal itself is in fact the largest undertaken by Bank of Scotland's
Integrated Finance unit. Since its inception in 2000, the team has concluded
more than 100 deals.
Commenting on the deal, Andy Powell, who led the team at Bank of Scotland,
said: "I am delighted to back such an experienced and high quality management
team. Tim Richards has a market leading track record in his industry and his Vue
business is ideally placed to achieve further development. I look forward to
working with Tim and his team in what will be an exciting future.
Continuing he said: "This deal represents a significant landmark in the
development of our Integrated Finance buy out business and it further
consolidates our position as the lead provider of finance to UK mid market buy
Vue Entertainment has the most modern cinemas in the UK, with over 90%
stadium seating and it won the award for International Exhibitor of the Year at
Cinema Expo in 2005.
For further information about Vue Entertainment, please contact
Adam Murray or Ed Grattan at freud communications
T: 020 7580 2626 /
E-mail: email@example.com /
For further information from Bank of Scotland, please contact
Mark Elliott at Bank of Scotland press office
T: 0131 243 5572 / E-mail:
For further information from Clarity Partners, please contact
W. Jack Kessler at Clarity Partners
T: 310 385 3695 / E-mail:
About Bank of Scotland Integrated Finance
Bank of Scotland Corporate, part of HBOS plc, has a reputation for excellence in
the provision of corporate finance, delivering innovative funding solutions
across a range of markets. Bank of Scotland has played a major role in the
development of the MBO/MBI market since its inception and has consistently been
the market leading debt provider by volume. Integrated Finance was launched in
February 2000 and employs over 100 people across the key corporate centres.
Since 2000 the unit has done more than 100 integrated finance deals and,
according to Incisive Media, it is currently the market leading buy-out firm in
the UK. Altogether, Bank of Scotland Corporate employs over 8,300 employees.
Total lending at the end of 2005 stood at GBP 79.2 billion.
About Clarity Partners
Clarity Partners is a Southern California based private equity firm focused
exclusively on investments in communications, media and related services and
technologies within those sectors. The senior members of the Clarity team have
been successful investors in these industry segments, but in addition, they have
all had senior level operating and financing experience. Clarity currently has
fifteen portfolio companies in these sectors, including investments in
television and home video, live entertainment, cable television, publishing,
Spanish language media, theatrical exhibition, feature film finance, wireless
telecommunications and optical components. For more information, please see
About Boston Ventures
Boston Ventures Management, Inc. is a private equity firm that has been an
active investor and financial partner to management teams in the media,
entertainment, publishing and information and communications sectors since 1983.
Boston Ventures' experienced principals have a diverse and complementary range
of skills and a broad network of domestic and international relationships.
Some of their named investments in their 23 year history include News
Corporation, National Enquirer, River City Broadcasting, Six Flags Amusement
Parks, Panavision, Motown Records and now Vue Entertainment as well as US cinema
complexes in their current and previous funds.
About Legal & General Ventures
LGV is a well established private equity firm operating in the UK mid-market.
LGV's investment focus is on backing highly motivated management teams in
buyouts and buy-ins of businesses with attractive market positions and strong
cash flows. Typically these investments would have an initial enterprise value
in excess of GBP 50m.
Sectors where LGV makes investments include leisure, healthcare, services and
consumer products. LGV currently has three other leisure sector investments
being The Club Company, an operator of 11 country clubs and golf courses in the
UK; Total Fitness, the operator of 24 health and fitness clubs in the UK and
Ireland; and Tragus, the operator of casual dining restaurant brands including
Cafe Rouge and Bella Italia. In the past, LGV has made successful investments in
The Unique Pub Company, a 4,000 strong tenanted pub business and Bourne Leisure,
the UK's leading caravan park operator.