AMC Entertainment To Buy Carmike Cinemas In $1.1 Bln Deal

(RTTNews) - AMC Theatres or AMC Entertainment Holdings Inc.(AMC) and Carmike Cinemas Inc. (CKEC) said that they have entered into a definitive merger agreement pursuant to which AMC will acquire all of the outstanding shares of Carmike for $30.00 per share in cash. The transaction is valued at about $1.1 billion, including the assumption of Carmike net indebtedness.

The purchase price per screen is about $376,000, and the per share purchase price represents an about 19.47% premium to Carmike's March 3, 2016 closing stock price.

The transaction is expected to result in free cash flow per share accretion, exclusive of one-time transaction-related charges, in 2017 and beyond, and is expected to produce annual cost synergies of approximately $35 million.

Commenting on the transaction, AMC Chief Executive Officer and President, Adam Aron said, "This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders. Through this transaction we expect to unlock synergies, sufficient we believe to make this transaction accretive in 2017."

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.

The transaction was approved by both Boards of Directors of AMC and Carmike, respectively.

The transaction is expected to be completed by the end of 2016, subject to customary closing conditions, including regulatory approval and approval by Carmike's shareholders.