Santa Fe, NM — September 2013 – Storyteller Theatres Corporation (“Storyteller” or the “Company”) announced the successful sale of its nine theatres to multiple buyers including Metropolitan Theatres, Mitchell Theatres and Allen Theatres, among others. Storyteller was established in 2008 when Marwit Capital (“Marwit”), a private equity group based in Southern California, acquired and rebranded the theatre division of Trans-Lux Corporation. The Company owned and operated theaters in New Mexico, Colorado, Wyoming and Arizona.
As is often the case in transactions involving the sale of retail-oriented businesses that own disparate locations and real estate, FocalPoint was able to assist Marwit in generating exit multiples in excess of traditional theater M&A valuations by focusing on individual asset sales as opposed to selling the entire chain to one buyer.
“Ultimately, we engineered a process over the course of a year that resulted in the sale of Storyteller’s nine theaters to five different buyers in seven individual transactions. With the disparate geographic footprint of Storyteller, along with its ownership of an eclectic mix of theater and real estate assets, we would not have been able to generate a full valuation in selling the entire business to a single buyer. As such, it was essential that we approached this sale process in a thoughtful manner geared towards maximizing the value of individual properties, and FocalPoint represented us very capably in this endeavor” said Chris Britt, Managing Partner at Marwit.
Nishen Radia, Managing Director and co-Founder of FocalPoint added, “We are extremely pleased with the results of this transaction for Storyteller and Marwit. The transaction was highly complex and involved many moving parts. We are confident that disaggregating the business into its component parts resulted in a significantly better outcome as compared to an outright sale of the entire business. This transaction represents another successful closing for our location-based entertainment industry coverage efforts.”
About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S. FocalPoint has a strong portfolio of closed transactions in the location-based entertainment industry, including deals in areas as diverse as theaters, bowling alleys, big-box restaurant/entertainment concepts, and health clubs.
About Marwit Capital
Marwit is a private investment firm that partners with management teams to build industry leading companies in the lower middle market. Founded in 1962, Marwit is one of the oldest and most experienced private equity firms in the Western U.S. Marwit invests in lower middle market businesses that have revenues of $20 to $200 million, EBITDA of $4 to $20 million, and enterprise values generally less than $100 million.
Please contact Nishen Radia or Brian Little at (310) 405-7000 with any questions about this transaction.