Shamrock books 3x return on Screenvision

The lower mid-market firm paid $160m for the cinema advertising company in 2010.

Shamrock Capital Advisors will sell cinema advertising company Screenvision to National CineMedia for $375 million, according to a statement. 

The firm declined to disclose a return multiple for the sale, but a source with knowledge of the situation said the exit generates more than a 3x return for Shamrock. The purchase price will be split between $225 million in cash and $150 million in National CineMedia stock. The deal represents Shamrock's first exit of 2014.

Screenvision’s advertising network is comprised of more than 15,000 screens in 2,500 theatre location in all 50 US states. Following completion of the transaction, Screenvision will merge with National CineMedia, a publicly listed media company that advertises in movie theatres, online and through mobile devices. National CineMedia operates the largest in-theatre digital media network in North America and expects to generate an estimated $30 million of annual operating cost synergies from the deal, according to the statement.

“Our merger agreement with Screenvision …will position the combined new company to be much more competitive in the expanding video and overall advertising marketplace, including the new online and mobile advertising platforms,” said National CineMedia’s chairman and chief executive Kurt Hall, in the statement. “As technology continues to empower consumers to watch programming how and when they want and view advertisements if they want, with our broader network reach and improvements we are making to our audience targeting capabilities I am confident that our theatre network will become the one place where brands are comfortable their ads are being seen.”

Shamrock paid $160 million for a 61 percent stake in Screenvision in 2010, invested from the firm's Fund II. The firm is currently investing from its Fund III, which closed on its $400 million hard-cap in 2011. Fund III is roughly a third invested or committed. 

Shamrock invests exclusively in media, entertainment and communications companies. The lower mid-market firm typically makes investments of between $15 million and $75 million but occasionally invests $100 million or more.

Los Angeles-based Shamrock Capital Advisors was founded in 1978 as the Disney family investment company. The firm’s first two funds closed on $170 million and $311 million, respectively.