AMC Theatres to acquire Carmike Cinemas, creating largest chain of movie theatres in the world

Jack Gao, Vice President of Wanda Cultural Industry Group, and Adam Aron, AMC Chief Executive Officer and President, take a photo together.AMC Theatres, owned by Wanda Group, signed a definitive merger agreement with Carmike Cinemas, Inc. on March 3, 2016. Under the terms of the agreement, AMC will acquire Carmike for $1.1 billion. Together AMC and Carmike own 663 theatre locations and 8,380 screens in 45 states across the United States, and the merger will solidify their position as the largest movie theatre chain in the world.

This transaction will also make Wanda Group the number one movie theatre operator in both China and the US, increasing Wanda’s market share in the global film industry and expanding their influence in Hollywood.

AMC Entertainment Holdings Inc. was listed on the New York Stock Exchange in 2013. The acquisition of Carmike was completed independently by AMC, leveraging the US capital markets without any funding from Wanda Group. Wanda Group has increased their market share by listing acquired companies for further acquisitions in the global cinema industry. Previously, Wanda Cinema Line in China also acquired Australian cinema chain Hoyts Cinema, a purchase that underscores the company’s ambition to build the world’s largest and most widely distributed cinema line network.

AMC was originally the second largest cinema chain in the US, owning 5,426 screens that are predominantly located in the downtown areas of major cities in the country. It operates the most productive theatres in the top US markets, and boasts the greatest market share in the three largest markets (New York, Los Angeles and Chicago).

A NASDAQ-listed company, Carmike Cinemas is the fourth largest cinema operator in the US with 276 cinemas and 2,954 screens, the majority of which are located in suburban and rural areas. With this acquisition, AMC will surpass US-based Regal Entertainment as the world’s largest cinema operator.