Stock Purchase Agreement Signed
Plitt Will Acquire Trolley Theatres Chain
A stock purchase agreement has been signed which will lead to the acquisition. The closing ix expected to be completed by next Friday.
Both parties declined to reveal the dollar amount of the transaction.
The takeover, which involves all Trolley Theatres in the Salt Lake Valley, will give Plitt a total of 30 screens, half of the screens in the valley. The acquisition will make Plitt the dominant exhibitor in the state, with a total of 37 screens.
Trolley Theatres principles, David L. Gillette, president; Jerry M. Place, executive vice president, will continue to control real properties owned by the company, including the Trolley Corners Building at 515 S. 700 East, and Trolley North, 1000 N. 500 East in North Salt Lake, while leasing them to Plitt. Leases for the other theaters will be turned over to Plitt.
Plitt will retain the Trolley name, said Edward M. Plitt, vice president of Plitt Theatres Inc. He said he expects no major policy changes in the way the theaters are operated, adding that Plitt will take on all management, box office and lobby personnel presently employed by Trolley.
Mr. Plitt said he first approached Trolley owners nine years ago about purchasing the theaters.
Trolley Theatre was incorporated in 1971. In June 1972, the corporation opened its first cinema - the Trolley Square Fourplex. Over the next decade the chain grew from one end of the Salt Lake Valley to the other.
The chain includes Trolley Square, Trolley Corners, Trolley North, Midtown Trolley and Family Center Trolley Theatres.
Plitt Theatres was established in 1973 by Henry G. Plitt, chairman and chief executive officer, and is presently the largest privately owned motion picture circuit in the United States with over 600 screens in 22 states.