Signature Theatres in Hawai'i may be sold to big-name Regal
Advertiser Staff and Wire Services
KNOXVILLE, Tenn. — Regal Entertainment Group, the country's largest movie exhibitor, yesterday announced pending acquisitions that would include its first cinemas in Hawai'i.
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Regal plans to acquire 37 theaters with 384 screens, including all of San Ramon, Calif.-based Signature Theatres' holdings. Signature operates 26 theaters in California and four in Hawai'i.
Regal Entertainment Group plans to acquire Signature Theatres, which owns multiplexes at Dole Cannery, Pearl Highlands, Windward Stadium and in Kailua, Kona.
Signature's theaters include the 18-screen Signature Dole Cannery; Pearl Highlands 12 in Pearl City; Windward Stadium 10 in Kane'ohe; and Keauhou 7 at the Keauhou Shopping Center in Kailua, Kona on the Big Island.
"We have got the deals all signed up and we would expect to close all of the transactions no later than the third quarter," said Mike Campbell, co-CEO of Regal Entertainment.
Regal also will buy five theaters in Massachusetts, New York, New Jersey and the Washington, D.C., area from the successor to Hoyts Cinemas and two theaters from independent owners in Connecticut and Massachusetts.
"We haven't disclosed any purchase price," Campbell said.
Scott Wallace, chairman, CEO and president of Signature's rival Wallace Theater Corp., doesn't expect Regal to significantly change Signature's Hawai'i format of first-run films.
"Regal's not a dollar operator and art house in this town doesn't work," Wallace said. "Regal's purely a first-run operator.
"Signature's a great set of assets but the majority of their assets are on the Mainland," Wallace said. "Regal's purchase of Signature had very little to do with Hawai'i."
Signature officials did not return telephone calls seeking comment.
Signature would be the 15th movie theater circuit acquired by Knoxville-based Regal. Regal runs 545 theaters in 39 states under the Regal Cinemas, United Artists and Edwards Theatres brands. The company controls 6,020 movie screens — nearly 17 percent of all screens in the United States.
"We are going to continue looking at acquisition opportunities as they arise and make a determination as to whether to participate in those opportunities based on quality of screens, obviously; purchase price and geographic fit," Campbell said.
The Signature chain complements Regal's existing theater locations in California and the Hawai'i theaters are all "relatively new, have good market share and (offer) some opportunity" for growth, he said. Most offer stadium-type seating.
Regal disclosed the acquisitions during a first-quarter earnings report yesterday.
Regal stock traded yesterday at $22.99 a share, down 10 cents.
Advertiser staff writer Dan Nakaso contributed to this report.
