AMC Theatres Agrees to Acquire Carmike Cinemas for $1.1 Billion

AMC Theatres at Eastridge, a 1.4 million-square-foot super-regional mall located in San Jose, California. AMC Theatres at Eastridge, a 1.4 million-square-foot super-regional mall located in San Jose, California.

Leawood, Kan. — In a blockbuster merger, AMC Theatres (NYSE: AMC) has agreed to purchase all of the outstanding shares of Carmike Cinemas Inc. (NASDAQ: CKEC) for $30 per share in cash.

The transaction — valued at approximately $1.1 billion including the assumption of debt — creates the largest chain of movie theaters in the United States and the world.

The purchase price per share represents an approximate 19.5 percent premium to Carmike’s closing stock price on Thursday, March 3. The purchase price per screen is approximately $376,000.

AMC currently has 5,426 screens at 387 theaters, located primarily in the United Sates, including many in the nation’s top markets. Carmike has 2,954 screens at 276 theaters, primarily located in mid-size, non-urban communities. Together, AMC and Carmike will have well over 600 theater locations in 45 states across the country, including the District of Columbia.

The deal, which has been approved by the board of directors at both AMC and Carmike is expected to close by the end of this year.

“By broadening AMC’s geographic and demographic base for delivering our groundbreaking guest experience innovations in comfort and convenience — such as plush power-recliners, enhanced food and beverage, premium sight and sound, greater guest engagement and targeted programming — AMC is poised to deliver the best possible movie experience to more moviegoers than ever before,” says Adam Aron, president and CEO of Leawood, Kan.-based AMC.

See more at: http://rebusinessonline.com/amc-theatres-agrees-to-acquire-carmike-cinemas-for-1-1-billion/#sthash.N8ONS4SB.dpuf

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