Doughty Hanson & Co., a London-based private-equity firm, said it will reap more than double its initial investment from the sale of European cinema chain Vue.
Omers Private Equity, the investment arm of the Ontario Municipal Employees Retirement System, and the Alberta Investment Management Corporation, agreed to buy the cinemas for about 935 million pounds ($1.4 billion), Doughty Hanson said in a statement today.
Doughty bought Vue from fellow private-equity firm Caird Capital in December 2010 for 450 million pounds. The firm has since doubled the number of cinemas Vue operates to 147 and acquired competitors including Apollo Cinemas in Britain and Poland’s Multikino.
The disposal is the second from its Doughty Hanson V fund after the sale of Norit, a maker of water-purification systems, the company said. The firm is in the process of raising about 2 billion euros ($2.6 billion) for its sixth buyout fund, Doughty Hanson VI. It will be the firm’s first fundraising since the death of co-founder Nigel Doughty in February 2012.
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