AMC Buys Carmike, Creating World’s Largest Movie Theater Chain
http://www.thewrap.com/amc-buys-carmike-creating-worlds-largest-movie-theater-chain/
In a billion-dollar deal, AMC Theatres has acquired Carmike Cinemas to become the largest movie theater chain in the world.
The transaction is valued at approximately $1.1 billion, including the assumption of Carmike net indebtedness. AMC will acquire all of Carmike’s outstanding shares for $30 cash. The purchase price per screen is approximately $376,000, and the per share purchase price represents an approximate 19.47 percent premium to Carmike’s closing stock price on March 3.
AMC currently boasts 5,426 screens and many of the most productive theaters in the country’s top markets. Carmike has 2,954 screens, primarily located in mid-size, non-urban communities. Together, AMC and Carmike would have well over 6,000 theater locations in 45 states across the country, including Washington DC.
The transaction is expected to provide significant growth for AMC and will allow it to bring its amenities and customer service to enhance the movie-going experience. It’s also expected to result in free cash flow per share accretion, exclusive of one-time transaction-related charges, in 2017 and beyond, and is expected to produce annual cost synergies of approximately $35 million.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders. 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. We also look forward to welcoming so many talented Carmike employees to the AMC team,” said AMC’s president/CEO Adam Aron.
http://www.thewrap.com/amc-buys-carmike-creating-worlds-largest-movie-theater-chain/
In a billion-dollar deal, AMC Theatres has acquired Carmike Cinemas to become the largest movie theater chain in the world.
The transaction is valued at approximately $1.1 billion, including the assumption of Carmike net indebtedness. AMC will acquire all of Carmike’s outstanding shares for $30 cash. The purchase price per screen is approximately $376,000, and the per share purchase price represents an approximate 19.47 percent premium to Carmike’s closing stock price on March 3.
AMC currently boasts 5,426 screens and many of the most productive theaters in the country’s top markets. Carmike has 2,954 screens, primarily located in mid-size, non-urban communities. Together, AMC and Carmike would have well over 6,000 theater locations in 45 states across the country, including Washington DC.
The transaction is expected to provide significant growth for AMC and will allow it to bring its amenities and customer service to enhance the movie-going experience. It’s also expected to result in free cash flow per share accretion, exclusive of one-time transaction-related charges, in 2017 and beyond, and is expected to produce annual cost synergies of approximately $35 million.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders. 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. We also look forward to welcoming so many talented Carmike employees to the AMC team,” said AMC’s president/CEO Adam Aron.
