AMC Theatres announced today it plans to acquire Dallas-based and privately held Starplex Cinemas for approximately $172 million in cash, subject to working capital and other adjustments.
Starplex operates 33 theatres with 346 screens in 12 states. When the acquisition is complete, AMC will operate approximately 380 theatres with 5,300 screens.
The acquisition will mean upgrades at the Starplex theatres.
“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.”
Leawood, Kan.-based 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.