The Toronto-based Onex and Oaktree will retain the Loews interest in Cineplex Galaxy, which operates the Loews theater business in Canada as well as Galaxy Entertainment. Loews is the third largest movie theater chain in the industry, with over 200 theaters and 2,200 screens worldwide. The assets being acquired include Loews' operations in the US, Grupo Cinemex, and its 50% interests in Megabox Cineplex of Korea and Yelmo Cineplex of Spain.

"Loews Cineplex has been an excellent investment for Onex," says Anthony Munk, a managing director of Onex, which acquired the company out of bankruptcy. "Since acquiring it we have built it into a leading exhibitor." As part of the transformation of Loews, the company completed three acquisitions in the US, Mexico and Korea. They also merged Loews' Canadian assets with Galaxy Entertainment as part of an income trust public offering.

John Connaughton, a managing director at Bain Capital, notes that the chain has a high quality circuit that is focused in the top 10 US markets and key international locations. "Thanks in part to an existing theater portfolio that has been recently upgraded, Loews is well-positioned to capitalize on the industry's steady growth prospects," he adds. "The investor group will work closely with the talented management team to grow the business."