Private equity firm Doughty Hanson today announced that it has sold the Vue Entertainment cinema chain for £935 million.
The firm has more than doubled their investment on today's sale, having acquired Vue in December 2010 for £450 million.
Doughty Hanson & Co. and the cinema operator's management sold their stakes in Vue in a deal expected to close at the end of July, according to a statement today by the three companies.
The deal is the private equity firm's fourth successful exit in the last twelve months.
Vue, which operates in countries including the U.K., Germany and Portugal, doubled the number of cinemas it owns in the past three years.
The number of cinemas under its ownership has risen from 70 to 146 and the number of screens has been increased from 678 to1,321. Last month it bought a theatre chain in Poland.
Chief Executive Officer Tim Richards, who founded Vue in 1998 in the loft of a Greek restaurant in Chiswick, will retain a "substantial equity stake" and continue leading the business, according to the statement.
He said today: "It has been a pleasure to work with Doughty Hanson during this stage of the company's development. The team has made a major contribution to the ongoing growth and success of the business and I have been very grateful for their commitment and support.
For more information on the UK cinema market, see the latest research: UK Cinema Market
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