Carmike Cinemas (NASDAQ:CKEC) was up 5.9% after hours alongside confirmation by AMC Entertainment (NYSE:AMC) that it's acquiring the rival cinema chain for $1.1B. AMC was up 7.2% in after-hours action.
The deal, at a 19.5% premium to Carmike's close, creates the largest movie theater chain in the world by combining America's second- and fourth-largest chains. The two will have 8,380 screens when combined, in more than 600 locations across 45 U.S. states.
The two expect accretion to free cash flow per share in 2017 and beyond (excluding transaction charges), and forecast annual cost synergies of about $35M.
Both boards have unanimously approved the deal, and it has fully committed financing in place.
AMC will discuss the deal in a Webcast tomorrow at 8:30 a.m. ET.
Carmike is halted in postmarket trading and is expected to resume at 8:30 p.m. ET. Its last postmarket quote was at $26.60, vs. the $30/share acquisition price.
Previously: AMC Entertainment to buy Carmike for $1.1B (Mar. 03 2016)
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