AMC Entertainment to Receive Approximately $45M Cash from Screenvision Transaction
LEAWOOD, Kan.--(BUSINESS WIRE)--Jun 6, 2018--AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”) announced today it expects to receive approximately $45 million in cash as part of a transaction announced today in which Abry Partners, a leading media-focused private equity firm, will take a controlling interest in Screenvision Media (“Screenvision”). Subsequent to this transaction, AMC continues to retain a minority equity position in Screenvision.
Screenvision is a privately held company that provides on-screen advertising, in-lobby promotions and integrated marketing programs in movie theatres. AMC acquired its interest in Screenvision through its purchase of Carmike Cinemas, Inc. in December 2016.
This transaction is consistent with AMC’s plan announced on Aug. 4, 2017, to identify approximately $400 million of non-strategic assets that could be monetized over the next 24 months. The company previously announced five significant AMC asset monetizations, including:On Aug. 8, 2017, AMC announced it had sold its 50 percent stake in Open Road Releasing, LLC (now known as Global Road Entertainment) for $14.4 million. On Sept. 14, 2017, AMC announced the sale leaseback agreement for seven of its U.S. theatres which generated approximately $128 million. On Sept. 18, 2017, AMC announced it had reached an agreement to sell 12 million shares of National CineMedia, Inc. (NASDAQ: NCMI) (“NCM”) stock for $73.1 million. On Oct. 2, 2017, AMC announced it had reached an agreement to sell 2.8 million shares of NCM common stock for $18.2 million. On June 1, 2018, AMC announced it had sold 1 million shares of NCM common stock for $7.2 million.
“This sale of Screenvision shares is yet another positive step forward for AMC as we continue to skillfully monetize assets without disturbing in any meaningful way our status and stature as industry leader,” said AMC CEO and President Adam Aron. “As has been the case with our other recent asset sales, we intend to use the sale proceeds to further assist us in pursuing the four primary goals of our capital allocation choices: (a) deleveraging, (b) returning cash to shareholders through share buybacks and dividends, (c) increasing our footprint by adding new theatres in the U.S., Europe and the Middle East and (d) achieving high investment returns when we renovate theatres with recliner seats, enhanced food and beverage options and an increased commitment to premium large format screens.”
“Screenvision Media has been an excellent partner of ours, delivering extraordinary media solutions on-screen and in the lobbies,” Aron continued. “We are thrilled that Abry has recognized the strength in the Screenvision Media platform and for the investment that they will be providing to continue the already-robust solution provided to ourselves and Screenvision Media’s other 170 exhibitor partners.”
“We greatly value our partnership with AMC and are delighted our performance delivered against their considered trust and expectations,” said John Partilla, Screenvision Media CEO. “We look forward to further earning our privileged partnership status in the years ahead.”
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the U.S., in Europe and throughout the world with more than 1,000 theatres and 11,000 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying more plush power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty program, web site and smartphone apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. AMC operates among the most productive theatres in the United States’ top markets, having the #1 or #2 market share positions in 22 of the 25 largest metropolitan areas of the United States, including the top three markets (NY, LA, Chicago). Through its Odeon subsidiary AMC operates in 14 European countries and is the #1 theatre chain in Estonia, Finland, Italy, Latvia, Lithuania, Spain, Sweden and UK & Ireland. In a joint partnership with The Development and Investment Entertainment Company, a subsidiary of The Public Investment Fund of Saudi Arabia, AMC also operates AMC Cinemas in the Kingdom of Saudi Arabia. For more information, visit www.amctheatres.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180606005684/en/
CONTACT: AMC Entertainment Holdings, Inc.
John Merriwether, 866-248-3872
Ryan Noonan, 913-213-2183
KEYWORD: UNITED STATES NORTH AMERICA KANSAS
INDUSTRY KEYWORD: ENTERTAINMENT FILM & MOTION PICTURES COMMUNICATIONS ADVERTISING MARKETING
SOURCE: AMC Entertainment Holdings, Inc.
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PUB: 06/06/2018 08:24 AM/DISC: 06/06/2018 08:24 AM