Imax-Regal deal to create two new theaters

Imax Corp. said Monday that it created a joint venture with Regal Entertainment Group that planned to build two theaters as part of a worldwide expansion.

Regal will add new giant-screen cinemas at its cineplexes in San Diego and Portland, Imax said. Mississauga, Canada-based Imax said the Regal joint venture was the first it has entered into with a major theater operator.

Imax aims to counteract declining revenue and profit by using partnerships with major cinema operators to open new theaters. Imax and Regal will share the cost and profit from their projects, the company said.

Imax is “accelerating its joint venture investment strategy,” the company said when it reported earnings in November. The company had 280 theaters as of Sept. 30.

Imax shares rose 46 cents to $5.08.

In another agreement announced Monday, Dickinson Theatres Inc. planned to add five Imax cinemas in U.S. locations.

Financial terms of the Regal venture and the Dickinson agreement weren’t disclosed.

Through a separate arrangement, Regal also plans to add an Imax theater to its cineplex in Orlando, Fla., Imax said. Regal already runs more Imax theaters than any other company, Imax said.

The theaters being developed by or with Regal will be ready for the May 4 opening of “Spider-Man 3,” Imax said.

Dickinson plans to add Imax theaters in cineplexes it is building in states including Arizona, Arkansas and Kansas, Imax said. Imax in February announced a deal with the China Science and Technology Museum to open two theaters in Beijing.

The lease agreement with Dickinson is Imax’s largest since 2004, the statement said. The first theater will open this year, with three more scheduled for 2008 and one in 2009.