Screenvision changes ownership structure

Shamrock, Carmike buy in; ITV, Technicolor cash out

Screenvision, one of the two primary companies putting advertising and special events on movie screens, will change its ownership structure, the company said Monday.

ITV, the giant free-to-air television broadcaster in the U.K., will sell its 50% stake in the company and Technicolor will cash out much of its investment in Screenvision, though it will hang on to a minority stake.

Buying the majority interest in Screenvision is Shamrock Capital Growth Fund II, a private equity fund focused on media and entertainment investments.

The deal also includes Carmike Cinemas taking a 20% stake in Screenvision while also amending and extending for 30 years a strategic relationship that involves Screenvision making periodic, small payments to Carmike and a $30 million payment in January.

When the overall transaction closes, Screenvision will have basically been purchased for $160 million, insiders said. Shamrock will own 61.2% of the company, Carmike 20% and Technicolor 18.8%.

Screenvision competes primarily with publicly traded National CineMedia. The two not only handle in-theater and onscreen advertising but also are instrumental in getting sports, concerts and other live events on movie screens.

"We expect alternative content to play an increasingly important role in further enhancing capacity utilization of entertainment complexes," Carmike CEO David Pressman said.

Shares of National CineMedia rose 1% Monday to $18, giving the company a market capitalization of $761 million.