AMC Buys Carmike theatre chain in $1.1 billion deal
AMC Theatres has acquired the Carmike theatre chain in a deal valued at $1.1 billion, the two companies announced Thursday.
By combining its 5,426 screens with Carmike’s 2,954 screens, AMC will have more than 600 theatre locations in 45 states across the country.
Prior to the deal, AMC and Carmike ranked as the second- and fourth-biggest theatre circuits in North America, respectively. Once the deal is completed by the end of 2016, AMC will jump ahead of the Regal Entertainment Group, which is currently the top chain, to become the biggest theatre circuit in the U.S. and around the world.
AMC, headquartered in Leawood, Kan., will acquire all of Carmike's outstanding shares for $30 per share in cash, and the deal includes the assumption of Carmike's net indebtedness. The purchase price per screen is approximately $376,000, and the per-share purchase represents a 19.47 percent premium over Carmike's March 3 closing stock price. The transaction is expected to produce annual cost synergies of approximately $35 million, AMC said.
Adam Aron, who became AMC CEO and president in January and who will continue in that role, said, "This is a compelling transaction that brings together two great companies with strengths to create substantial value for our guests and shareholders. Through this transaction, we expect to unlock synergies, sufficient we believe to make the transaction accretive in 2017."
AMC Entertainment Holdings is a subsidiary of the Chinese conglomerate Dalian Wanda Group, which acquired AMC for $2.6 billion in 2012.—The Hollywood Reporter