AMC Theatres, which is owned by the Chinese media conglomerate Wanda Group, announced on March 3 that it has acquired Carmike Cinemas. The deal will create the largest theater chain in the U.S. and the world.
As part of the deal, AMC will buy all outstanding shares of Carmike for $30 per share. The deal is valued at $1.1 billion.
AMC already has 5,426 screens across the country and Carmike adds 2,954 to its roster. The chain will have a foothold in 45 states and Washington, DC with over 600 locations.
Prior to the deal, Regal Cinemas was the largest theater chain in the U.S.
Carmike considers itself America’s hometown circuit and is mostly based in non-urban areas throughout the country.
“This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders,” AMC Chief Executive Officer and President Adam Aron said in a statement. “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.”
As for AMC, it was bought by Wanda in May 2012 and vowed in 2014 to add more recliners while cutting the number of seats in individual theaters.