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SYDNEY - Another prominent Australian company has been sucked into the private equity vortex, with the Hoyts Group cinema chain to come under the control of Pacific Equity Partners.
The deal values the 55-cinema chain, film advertising and distribution company at A$440 million ($513 million).
Current owners, Publishing and Broadcasting Ltd and West Australian Newspapers Holdings Ltd, will each realise about A$150 million ($175m) from the sale.
Pacific Equity Partners managing director, Rickard Gardell, said Hoyts had good growth potential.
"We look forward to partnering with an excellent management team and investing in future growth opportunities," Mr Gardell said.
The Foreign Investment Review Board and the New Zealand Overseas Investment Office must approve the deal before it can be completed.
At PBL's full year profit announcement in August, the media/gaming giant said Hoyts had contributed a profit of A$19.5 million, but it wrote down its value to A$143 million.
PBL new media chief executive Martin Dalgleish said the company would remain a prominent and important Australian company.
"Hoyts is one of the true iconic and leading entertainment brands of the region," Mr Dalgleish said.
Pacific Equity Partners (PEP) is an Australasian private equity firm that has been involved in numerous high profile bids, including the unsuccessful buy-out attempt of the nation's biggest travel agent, Flight Centre Ltd.
-AAP
