Movie Gallery to Acquire Canada Chain
Dothan, Ala., While it works to finalize its acquisition of Hollywood Entertainment, Movie Gallery has marked another video-rental chain for takeover—this time it’s Canadian rival VHQ Entertainment, which operates 61 stores in Alberta and Saskatchewan. Movie Gallery will take over VHQ for $16.5 million, including assumed debt, in a deal expected to close in the second quarter of 2005. The deal will bolster Movie Gallery’s 200-store presence in Canada. Movie Gallery’s intention to acquire Hollywood, however, was put in doubt by a higher bid from video-giant Blockbuster, offered straight to Hollywood shareholders.