Dallas-based Blockbuster sells off Xtra-vision, its Irish equivalent

by PegNews wire

Dallas-based Blockbuster Inc. has sold Xtra-vision, its 186-store entertainment retailer in Ireland, to Birchhall Investments for U.S. proceeds of up to $45 million in cash, subject to certain adjustments. Birchhall Investments is an Irish company owned by NCB Ventures and clients of NCB Group Limited, one of Ireland's largest independent securities firms.

Blockbuster expects to use a majority of the proceeds from the sale for incremental liquidity. Financo Inc. served as financial advisor to Blockbuster for the transaction.

Jim Keyes, Blockbuster chairman and chief executive officer, said, "Today's announcement furthers our goal of improving liquidity and underscores our intent to advance the sale and licensing of our international assets as we focus on the continued transformation of our North American business. Xtra-vision is the leading entertainment chain in Ireland and one of the most recognizable brand names in the country. It has performed very well during our ownership and we believe it is well positioned for ongoing success under the ownership of Birchhall Investments."

Blockbuster purchased Xtra-vision Limited, Ireland's leading home entertainment company, in 1997. With stores throughout the Republic of Ireland and Northern Ireland, the chain offers an extensive range of products and services including movies and games for rental and retail purchase, music, consumer electronics and mobile phones.

Source: Blockbuster