Grupo Mexico Buys Cinemex

Grupo Mexico’s entertainment arm has bought Mexican movie theater business Grupo Cinemex from AMC Entertainment for $311m. The strategic sale, which was five months in the works, is expected to close in 60 days and was done to generate cash. Grupo Mexico, which apparently did not use an advisor, will fund the deal with cash on hand, says a banker familiar with the transaction. The deal was done by competitive 2-phase auction. Credit Suisse advised the seller. Cinemex operates 44 theatres with 493 screens primarily in the Mexico City Metropolitan area. Prior to this deal, Entretenimiento GM de Mexico bought another movie theater chain in Mexico, MM Cinemas.