film distribution business Park Circus has been acquired by cinema financier and distributor Arts Alliance for an undisclosed sum.
Glasgow-based Park Circus confirmed Arts Alliance, part of the investment interests of the Norwegian Hoegh family, which built its initial fortune in shipping, has bought a majority stake.
Nick Varley and John Letham are staying on with the business they founded in 2003 and which manages the theatrical distribution rights to more than 20,000 classic movies. Its catalogue includes the likes of Pulp Fiction, The Godfather, Casablanca and Lawrence of Arabia.
Arts Alliance, which has its headquarters in London, specialises in one-off cinema events such as live screenings of theatre productions, rock concerts and operas. Next month it is distributing One Direction's Where We Are concert into more than 3,000 screens around the world.
Mr Varley stressed it was business as usual at Park Circus but the deal allows it to grow more quickly. He said: "We are at the point where the company is the biggest at what it does in the world. Because myself and John are not independently wealthy people [then], in order to take it to the next level you have two choices. You either take a lot of investment in from a bank or financial institution, or you do what we have done and get into a relationship with a company that has the money to invest, and do new and exciting things, but also has an existing infrastructure in a slightly different area of the film business."
The deal will see Park Circus link in to the relationships Arts Alliance has with cinemas around the world as well as continuing to supply national film bodies and the film festival circuit.
Mr Varley added: "There is a synergy across all areas of operations that make complete sense if we want to take Park Circus to the next level and offer our customers something that is unrivalled. We simply couldn't do that within our existing infrastructure.
"The brand continues, the job we do for the people continues. The only difference people will notice in the short to medium term is that our offer will be greater as we will have a greater outlet for what we have."
Mr Varley confirmed Mr Letham will still work with the business but probably not in the managing director role he had filled. However Mr Varley insisted the company's base in Scotland's largest city, where it employs 10 people, was secure.
He said: "It is not just about us being bought by a big company who knows it all. It is about both companies coming together with their shared knowledge and experience to offer not just cinemas but audiences, something they have never been offered before.
"We have lots of ambitions globally between the two companies. To avoid any confusion the Glasgow operation is completely safe. If anything we will look to develop the operation here to do more group activity."
Mark Foster, chief executive of Arts Alliance, said: "Nick, John and their team have established an unmatched reputation as the go-to suppliers of classic movies for exhibitors from all around the world."
Other parts of the Arts Alliance group include investment wing Arts Alliance Advisors and digital projection technology specialist Arts Alliance Media.
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