AMC Theatres will purchase the Carmike Cinemas chain, according to a joint released issued by the two companies Thursday. The combined company will become the largest movie theater chain in the country, with more than 600 locations in 45 states and the District of Columbia.
Carmike operates 276 theatres with 2,954 screens in 41 states, including theatres in Pensacola, Fla., Mobile, Ala., Daphne, Ala., Orange Beach, Ala., and Miramar Beach, Fla.
The terms of the deal call for AMC to acquire all outstanding shares of Carmike for $30.00 per share in cash. The transaction is valued at approximately $1.1 billion, including the assumption of Carmike’s outstanding debt. The purchase price per screen is approximately $376,000.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders,” said AMC chief executive officer and president Adam Aron. “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.”
“Our combination with AMC is a transformative milestone for Carmike and one that provides significant value to Carmike shareholders,” said David Passman, Carmike’s president and chief executive officer. “By joining with AMC, we are bringing together two highly complementary theatre footprints and a shared commitment to service and innovation, positioning the combined company to deliver an even more compelling movie-going experience in many more locations across the country.”
In a letter to guests posted on Carmike’s website, Passman said, “We expect this transaction to be largely seamless for our guests. You can continue to enjoy Carmike Cinemas, earn and use points in our Rewards program, and purchase and use gift cards as you always have.”
AMC Theatres is owned by AMC Entertainment, Inc., which is in turned owned by AMC Entertainment Holdings, Inc., a majority-owned subsidiary of Chinese conglomerate Dalian Wanda Group, owned by Chinese billionaire Wang Jianlin.
The transaction has been approved by both AMC and Carmike’s board of directors and is expected to close by the end of the year.