Chicago-based private equity firm Madison Dearborn Partners has agreed to purchase theatre chain Cinemark in a transaction valued at $1.5 billion (€1.22 billion).
The deal reportedly includes $1 billion in cash and $560 million in assumed debt.
The company’s founder, chairman and chief executive officer, Lee Roy Mitchell, will continue to run Cinemark. New York private equity firm, The Cypress Group, a minority shareholder, will exit its investment.
Cinemark has 3,142 screens in 33 US states and throughout Central and South America.
Separately, another major theatre chained owned by private equity investors – Loews Cineplex Entertainment – has announced it will begin searching for buyers. Loews is owned by Toronto-based Onex and Los Angeles-based Oaktree Capital Management.