AMC Theatres (“AMC”) and privately held Starplex Cinemas (“Starplex”) announced they have entered into a definitive purchase agreement for AMC to acquire Starplex for approximately $172 million in cash, subject to working capital and other adjustments. When completed, AMC will operate approximately 380 theatres with 5,300 screens.
By broadening its footprint for delivering groundbreaking guest experience innovations — such as plush power-recliners, enhanced food and beverage, premium sight and sound, greater guest engagement and targeted programming – the acquisition will expand AMC’s proven ability to deliver an exceptional movie experience to more movie-goers.
“This acquisition is expected to create immediate and long-term substantial value for guests and shareholders,” said AMC CEO Gerry Lopez. “We will add 90 recliner re-seated screens to our portfolio and plan to add recliners to an additional 80 screens over the next five years, further transforming the movie-going experience for millions of guests. Our large market theatre portfolio will be complemented by new small and mid-size market theatres, which gives AMC broader movie genre appeal across a wider spectrum of guests.”
“Starplex and AMC have a shared vision to provide a quality guest experience, and even more of our guests will now benefit from recliner re-seats and other great amenities,” said Starplex CEO Steve Holmes. “Today’s transaction provides Starplex shareholders with meaningful and immediate value.”
AMC will acquire Starplex on a cash-free, debt-free basis. AMC plans to fund the acquisition using cash on its balance sheet and availability under its existing revolving credit facility, if necessary.
Husch Blackwell LLP is serving as AMC’s lead legal advisor. Peter J. Solomon Company is serving as exclusive financial advisor to Starplex and Andrews Kurth LLP is serving as Starplex’s legal advisor.
The transaction is subject to customary closing conditions including receipt of anti-trust approval. The companies anticipate closing this transaction by the end of 2015.