Carmike to acquire 16 Rave multiplexes
Carmike Cinemas signed a definitive agreement to purchase 16 entertainment complexes with an aggregate of 251 screens based in seven states and 13 individual markets from Rave Reviews Cinemas, LLC, a portfolio company of BV Investment Partners (Rave). The purchase price consists of $19 million in cash, subject to customary working capital adjustments, and $100.4 million of assumed lease obligations, comprised of capital leases and financing obligations.
Carmike Cinemas president and CEO David Passman stated, “The addition of these 16 state-of-the-art theatres and 251 screens from Rave is a key, opportunistic development for Carmike, as we recently embarked on a corporate mission of expanding our footprint to 300 theatres and 3,000 screens through attractive acquisitions. Importantly, seven of these theatres are leaders in their respective markets and another four are the number-two box office generators in their region. The average age of the properties we are acquiring is only eight years, so we expect limited maintenance capital-expenditure requirements on the facilities over the near-term. We also look forward to enthusiastically welcoming the Rave associates at these theatres to the growing Carmike family.”
All 251 auditoriums have full digital projection and stadium seating. Approximately 40% of the screens are 3D-capable and seven theatres include IMAX large format screens. All 251 screens are participants in the Screenvision Cinema Network.
The acquisitions are: Lee Branch 15, Patton Creek 15 and Vestavia Hills 10 in Birmingham, AL; Jubilee Square 12 in Daphne, AL; Valley Bend 18 in Huntsville, AL; Wharf 15 in Orange Beach, AL; Avenue 16 in Melbourne, FL; Bayou 15 and Pensacola 18 in Pensacola, FL; Port St. Lucie 14 in Port St. Lucie, FL; Jefferson Point 18 in Fort Wayne, IN; Metropolis 18 in Indianapolis, IN; Grand Prairie 18 in Peoria, IL; Promenade 16 in Allentown, PA; East Ridge 18 in Chattanooga, TN; and Yorktown 15 in Houston, TX.