posted 11-17-2005 02:54 PM                    

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March 31, 2005

Century Theatres on block

By Nicole Sperling

Bay Area-based Century Theatres is looking for a buyer.

According to several sources, the 64-year-old theater circuit has enlisted the services of investment banker Morgan Stanley to manage the sales process. An offering memorandum went out to interested parties Monday.

Century did not return calls seeking comment. Morgan Stanley investment banker Richard Brail declined comment.

Founded in 1941 by Raymond Syufy, the 1,000-screen circuit is run by brothers Raymond and Joseph Syufy. Based in San Rafael, the circuit boasts theaters throughout Northern California as well as in Arizona, Nevada and nine other Western states.

The Syufy brothers have built up a very successful theater chain over the years and, sources speculate, are more interested in selling because of the current market conditions, which have seen various chains gobbled up by larger competitors or private equity players looking for fresh investments.

Likely parties for the regional circuit include the three largest U.S. theater chains, Regal Entertainment Group, backed by oil billionaire Philip Anschutz; AMC Theatres, now owned by affiliates of JP Morgan Partners and Apollo Management; and Loews Cineplex, which is backed by Bain Capital, the Carlyle Group and Spectrum Equity Investors. All these companies have said they are interested in growing their business through acquisitions. According to one exhibitor, "(Century is) a nice circuit, well concentrated in good markets with a modern asset base. It's a strong company."

Also interested in kicking the tires are thought to be such smaller companies as Texas-based Cinemark U.S.A, now owned by Madison Dearborn Partners Inc., and Kerasotes Theatres in the Midwest, which received a $75 million equity investment in 2003 from Providence Equity Partners for the sole purpose of growing the circuit.

Sources say confidentiality agreements are being executed and letters of intent likely will be accepted this month.

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posted 11-17-2005 04:45 PM                       

quote: Brad Miller

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I could be wrong here, but I think Century is the ONLY chain that is 100% debt free. They do good business because they build quality theaters and don't cinch out in their presentations, so why in the world would they sell?

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