Ratos, the Swedish private equity conglomerate, has acquired the Finnish movie theatre group Finnkino Oy from the media group Sanoma. The purchase price is about EUR 94.3 million of which Ratos will provide equity of approximately EUR 50 million.
Finnkino Oy is the largest movie theatre chain in Finland and the Baltic countries with 25 movie theatres and 161 screens with a total of approximately 30,000 seats. The company also conducts film distribution and some distribution of DVDs and video films. The movie theatre operations are conducted under the name Finnkino in Finland and Forum Cinemas in the Baltic countries.
“The movie theatre market is showing positive development in the Nordic region. Since the end of the 1990s, Finnkino has renewed the Finnish and Baltic cinema market by building modern and attractive movie theatres,” said Ratos CEO Arne Karlsson. He believes that with continued investments in new movie theatres and technology, both the number of visitors and revenue per visitor are expected to rise in Finland.
In 2010 movie theatre ticket sales in Finland increased by 16%, with Finnkino taking 70% of the total sales of EUR 66 million. The company’s sales totalled EUR 88.6 million with an operating profit of EUR 8.5 million. The number of admissions in Finnkino’s cinemas amounted to 9.9 million in 2010.
Sources: Ratos, Helsingin Sanomat