AMC with 5,426 Screens Buying Carmike Cinemas' 2,954 Screens to Create Biggest U.S. Theater Chain in $1.1 Billion Deal
In a bold move to consolidate ownership of U.S. movie theaters, AMC Entertainment announced an agreement to acquire Georgia-based Carmike Cinemas to create the largest movie theater chain in the U.S. controlling more than 600 theaters and 8,380 screens.
Under the terms of the agreement, AMC will pay Carmike shareholders $30 per share, representing a 19 percent premium over the stock's closing price on Thursday. AMC will also assume Carmike’s debt, putting the entire transaction value at about $1.1 billion.
Kansas-based AMC is currently the country’s second-biggest movie theater chain with 5,426 screens. Its theaters are mostly concentrated in large markets, including New York, Los Angeles and Chicago. In comparison, the majority of Carmike's 2,954 screens are located in small and mid-size markets.
The combination would result in AMC and rival Regal Entertainment Group, which operates 7,361 screens in 572 theaters, dominating the American cinema industry.
AMC was purchased in 2012 by China’s Dalian Wanda Group Co. for $2.6 billion, which then took the company public in a 2013 stock sale. Wang Jianlin of China’s Dalian Wanda Group remains AMC’s controlling investor.
Dalian Wanda also recently purchased Hollywood producer Legendary Entertainment for $3.5 billion earlier this year.