Movie Gallery Buys 20-Store Chain27 Mar, 2002 By: Hive News
Movie Gallery, Inc. has put another 20 notches in its store count belt with the announcement today that it has acquired a video specialty store company operating 20 stores primarily Virginia.
This brings the company's store acquisition count for the first quarter of 2002 to 38.
"We are pleased to have completed this transaction, one of many we expect to evaluate during 2002," remarked chairman and CEO Joe Malugen. "Although we have often stated that internal store development is an important growth vehicle for us, we also believe that on-strategy, accretive core market acquisitions, such as this one, are an efficient means of entering markets or developing a dominant market position. We further believe that Movie Gallery has developed the most extensive experience in the integration of single and small-chain video specialty stores in the rural and secondary marketplace and that we are the best positioned company to operate them successfully. We, therefore, expect to continue leveraging our expertise to use
acquisitions, in conjunction with internal store development, to achieve our growth objectives.''
Movie Gallery owns and operates 1,462 video specialty stores in 41 states and five Canadian provinces. Although the company announced the acquisition, the name of the assumed chain was not immediately available.