Leawood, KS-based AMC Theaters has announced that it will acquire Carmike Cinemas, making the combined company the largest movie theater chain in the U.S. The purchase price is $1.1 billion.
AMC CEO Adam Aron said the acquisition will help AMC expand its geographic reach and cater to millions of new customers. AMC has 387 theaters, while Carmike operates 276 theaters. The newly combined company will have more theaters than the current leader, Regal Entertainment Group, which has 472 theaters.
AMC will pay $30 per share in cash to acquire Carmike’s outstanding shares. The deal will be financed with existing liquidity, cash on hand and incremental debt.
AMC plans to bring its higher-end experience, such as premium food and drinks and plush recliners, to Carmike locations. The two companies are complementary, as AMC theaters are primarily located in larger markets, and Carmike theaters are generally located in mid-size communities.
Carmike CEO David Passman said, “By joining with AMC, we are bringing together two highly complementary theater 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.”
The deal is expected to close by the end of the year.