Onex will invest a total of approximately $34 million as part of the transaction.
"This acquisition brings Star Theatres completely under Loews Cineplex' control and strengthens the overall quality of the company's circuit," says Anthony Munk, managing director of Onex Investment Corp. "Our intention is to continue the repositioning of Loews Cineplex as the highest quality circuit in the exhibition industry."
Star Theatres is a cinema exhibition company with 10 theaters and a total of 156 screens, primarily in metropolitan Detroit. The theater group ranks as the 19th-largest in the US.
The movie theater group has been widely seen as causing the death of many of the smaller chain theater groups in the Detroit metro area, including the Abbey Theater in Madison Heights and the United Artists theater in Troy.
Under the purchase agreement, the principals of the Loeks-Star Partnership, Jim and Barrie Loeks, will continue to manage the operations of Star Theatres until June 30. Loews Cineplex will then assume management of the company.
Star Theatres generates approximately $75 million of annual box office revenue.
Onex Corporation is a diversified company with annual consolidated revenuesof approximately $24 billion and consolidated assets of approximately $21 billion.
Oaktree Capital Management, LLC, based in Los Angeles, is a private investment management firm specializing in inefficient markets and alternative investments with approximately $23 billion of assets committed for management primarily from institutional investors.
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