AMC Theatres to Acquire Starplex Cinemas for $172 Million
“This acquisition is expected to create immediate and long-term substantial value for guests and shareholders,” says AMC CEO Gerry Lopez.
Exhibition giant AMC Theatres has agreed to acquire privately-held Starplex Cinemas for approximately $172 million in cash.
Once the deal closes, AMC will operate approximately 380 theaters with 5,300 screens.
“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."
He added: "Our large-market theater portfolio will be complemented by new small and mid-size market theaters, which gives AMC broader movie genre appeal across a wider spectrum of guests."
The deal is expected to boost earnings-per-share and cash flow, excluding one-time transaction-related charges, in 2016 and beyond, AMC said. It also lauded Starplex as an exhibitor with locations with limited geographic overlap and "complementary guest demographics."
The company also highlighted the "attractive synergies available by combining back-of-the-house functions, such as human resources, accounting, finance and technology."
Starplex CEO Steve Holmes said: "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."