Movie Gallery to Acquire VHQ Entertainment3 Mar, 2005 By: Lyndsey Shinoda
Movie Gallery has entered into an agreement to acquire Canadian-chain VHQ Entertainment.
Under the agreement, Gallery's wholly-owned subsidiary, Movie Gallery Canada, will start a takeover bid to purchase all outstanding shares of VHQ's common stock at an offer price of $1.15 (Canadian) per share.
VHQ owns and operates 61 video rental stores. Movie Gallery has more than 200 stores in Canada.
Joe Malugen, chairman, president and CEO of Movie Gallery, said the acquisition will strengthen the company's presence in Canada.
Movie Gallery expects to finance the acquisition with money from operations and an existing credit facility.