AMC Theatres, which offers a premium movie-going customer experience, just added another compelling reason to become a loyal customer.
AMC Theatres acquired Carmike Cinemas this week and the deal is valued at about $1.1 billion, including the assumption of Carmike net indebtedness. The purchase price per screen is approximately $376,000, and the per share purchase price represents an approximate 19.47% premium to Carmike’s March 3, 2016 closing stock price.
AMC Theatres is one of the nation’s premier entertainment companies with 5,426 screens and the most productive theatres in the country’s top markets. Carmike, America’s hometown theatre circuit, has 2,954 screens, primarily located in mid-size, non-urban communities.
Combined, AMC and Carmike would have well over 600 theatre locations in 45 states across the country, including the District of Columbia. The transaction is expected to provide significant growth for AMC and will allow it to bring its innovative amenities and best-in-class customer experience to enhance the movie-going experience for more customers in more areas.
The combined company will be headquartered in Leawood, Kansas. Adam Aron will serve as Chief Executive Officer and President; and Craig Ramsey will serve as Executive Vice President and Chief Financial Officer.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders,” said Aron. “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. 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 movie-goers than ever before.”
Carmike President and CEO David Passman said: “Our combination with AMC is a transformative milestone for Carmike and one that provides significant value to Carmike shareholders. 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. I am proud of the Carmike employees whose dedication and hard work have made this combination and its many benefits possible. We look forward to working together with the AMC team to complete the transaction and to ensure a seamless transition.”