Virgin merges two units
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September 16, 1997: 12:32 p.m. ET
Company combining retail, cinema units as part of $558M deal
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NEW YORK (CNNfn) - Britain's Virgin Group said Tuesday it will merge its retail and cinema businesses in a deal valued at $558 million.
The company will call the combined unit Virgin Entertainment Group, which will oversee 58 music megastores and 27 cinemas in the U.K. and Ireland.
"Both [units] are extremely important carriers of the Virgin brand worldwide," said Virgin founder Richard Branson.
The new company will use a $239 million loan to expand in the United States and Europe, it said.
Virgin Group will own about 70 percent of Virgin Entertainment. Three investment groups will own the rest. They are two U.S. companies, Texas Pacific Group, 14.3 percent; and Colony Capital Inc., 10 percent; and Singapore's Hotel Properties Inc., with 5.7 percent.
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Virgin Group
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