Jumbo Entertainment Buys Starstruck20 Dec, 2001 By: Hive News
Jumbo Entertainment Inc. will buy Starstruck Entertainment, a three-store video retail chain.
Starstruck operates from retail premises at Square One Shopping Centre and Sherway Gardens Shopping Centre in suburban Toronto, ON and at Burlington Mall at Burlington, ON.
The acquisition is to be structured as a share purchase. Terms were not announced.
"We see the sellthrough business as an increasingly important part of the home entertainment business," said Jumbo Entertainment chairman Ken Fowler. "Starstruck is a Canadian leader on the retail side of the business and has been in the forefront of the emergence of DVD and has successfully developed a reputation as the place to shop for DVD in the Metropolitan Toronto area. We at Jumbo Entertainment look forward to building a stronger sellthrough video and DVD business and expanding the Starstruck Entertainment concept as demand from consumers for more and more DVD movies continues to grow rapidly."
The acquisition is conditioned on Jumbo's completion of due diligence is expected to be completed early next year.
The proposed Starstruck acquisition is in addition to a previously announced Letter of Intent pursuant to which Jumbo Entertainment agreed to acquire the Microplay operations of Hip Interactive Corp. Due Diligence continues in that transaction.
Jumbo Entertainment franchises Jumbo Video and Jumbo Video New Releases stores across Canada.