Tom Stephenson was chief executive of the Rave theater chain in 2010. (Allison V. Smith / Los Angeles…)
Cinemark USA, Inc., the nation's third largest theater chain, said it is acquiring Rave Cinemas, the Dallas, Texas based chain that operates the former Bridge theater in Los Angeles, for $240 million.
The deal, which is subject to regulatory approval, includes 32 theaters located in 12 states, representing 483 screens.
Based in Plano, Texas, Cinemark operates 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries.
"The acquisition of these high quality assets will further enhance Cinemark's diversified domestic footprint, including the expansion of our presence in the New England market," Tim Warner, Cinemark's Chief Executive Officer said in a statement.
The theaters generated revenues of $228 million and net income of $21.9 million in the last year.
Launched in 1999, Rave expanded by acquiring and renovating theaters in underserved smaller markets in the South and Midwest, including Ft. Wayne, Ind., Baton Rouge, La., and Peoria, Ill.
The chain, backed by TowerBrook Capital Partners, a New York investment firm that owns the alcoholic beverage superstore BevMo, was an early player in screening live sporting events and concerts in theaters.
The deal is the latest consolidation in the U.S. exhibition industry. Last month, Carmike Cinemas, the Columbus, Ga.-based chain, said it had signed an agreement to buy 16 theaters with 251 screens from Rave for $19 million in cash and $100.4 million of assumed lease obligations.
China's Dalian Wanda Group recently acquired AMC Entertainment, the nation's second largest theater chain for $2.6 billion.
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