Hollywood Entertainment Corporation Signs Definitive Merger Agreement With Movie Gallery, Inc.; Shareholders to Receive $13.25 Per Share in Cash
Jan 10, 2005 /PRNewswire via COMTEX/ -- PORTLAND, Ore., Jan. 10 /PRNewswire-FirstCall/ -- Hollywood Entertainment Corporation (Nasdaq: HLYW), owner and operator of more than 2000 Hollywood Video superstores and more than 700 Game Crazy departments, today announced the signing of a definitive merger agreement to be acquired by Movie Gallery, Inc. (Nasdaq: MOVI).
Under the terms of the merger agreement with Movie Gallery, Hollywood's shareholders will be entitled to receive $13.25 per share in cash at closing. Hollywood's entry into the merger agreement with Movie Gallery occurred at the conclusion of an auction process led by a Special Committee of Hollywood's Board of Directors comprised of all of the independent directors of Hollywood's Board of Directors, during which the Special Committee solicited interest among a broad range of potential corporate and financial buyers. The auction process was conducted during the period following the execution of the October 13, 2004 amended and restated merger agreement with Carso Holdings Corporation, an affiliate of Leonard Green & Partners, L.P., the terms of which expressly allowed Hollywood to solicit alternative transactions. Under the terms of the merger agreement with Carso, Hollywood's shareholders were to receive $10.25 per share in cash. The $13.25 per share price to be received by Hollywood's shareholders under the terms of the merger agreement with Movie Gallery represents a 30% premium over the $10.25 price negotiated with Carso.
Here's the rest of the press release issued by Hollywood Entertainment.
Thanks to Erie and Alex for sending this in.