AMC Theatres Acquires Carmike Cinemas for $1.1 Billion3 Mar, 2016 By: Erik Gruenwedel
Merger creates world’s largest theater chain with 8,300 screens
AMC Theatres March 3 announced it is acquiring Carmike Cinemas for $1.1 billion in cash, which includes the assumption of Carmike debt. The deal creates the world’s largest theater chain with more than 8,300 screens. The purchase price per Carmike screen is approximately $376,000.
AMC and Carmike combined have more than 600 theater locations in 45 states nationwide, including the District of Columbia. The transaction is expected to produce annual cost synergies of about $35 million. It should enable AMC to further expand its upgraded amenities campaign in theaters.
The combined company will be headquartered in Leawood, Kan., with AMC CEO Adam Aron serving as CEO of the combined company. AMC CFO Craig Ramsey will serve as CFO.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders,” Aron said in a statement. “Through this transaction we expect to unlock synergies, sufficient we believe to make this transaction accretive in 2017. AMC also gets to extend the reach of our innovative, guest-experience strategies to further transform the movie-going experience for millions of new guests.”