Carmike acquires nine complexes from Muvico Theaters
Carmike Cinemas signed a definitive agreement to purchase nine entertainment complexes with an aggregate of 147 screens located in Florida, California and Illinois from Muvico Entertainment, LLC for $31.75 million in cash. The transaction is expected to close in the fourth quarter of 2013.
Upon closing, Carmike’s theatre portfolio will increase to 257 theatres with an aggregate of 2,681 screens in 37 states. The acquisition is projected to add incremental revenue of $68 million for the 12-month period ended August 31, 2013.
Carmike Cinemas’ President and Chief Executive Officer David Passman stated, “Similar to Carmike, Muvico is a cinema technology leader and industry pioneer, with recent capital expenditures for digital projection system upgrades, IMAX and MuviXL large format screens, installations of cutting-edge sound, reserved seating and ticket kiosks, as well as additional facility enhancements. We expect limited incremental maintenance capital expenditures on these acquired facilities over the near-term.
“The acquisition also will bring two Bogart’s Bar & Grill restaurants to our circuit at the Thousand Oaks, Calif. and Rosemont, Ill. complexes, furthering our entry into the full-service food and beverage arena. A majority of the theatres have beer and wine service, as well as on-site entertainment centers, party rooms and conference facilities.”
Of the acquired auditoriums, 97% feature digital projection systems and all contain stadium-seating configurations. Approximately 24% of the screens are 3D-capable and four theatres have premium large-format screens. All locations include D-BOX motion-code action seats.
Of the nine theatres being purchased, seven are located in Florida, where Carmike currently has 13 locations. The Rosemont 18 is slated to be Carmike’s 11th Illinois theatre. The Thousand Oaks 14 will be Carmike’s first California-based complex, marking its 37th state with at least one location. All 147 screens in this prospective transaction are already participants in Screenvision’s cinema-advertising network.