AMC Entertainment has acquired Odeon & UCI Cinemas Group from Guy Hands' Terra Firma in a deal valued at approximately £920 million. The transaction adds 242 sites to AMC's existing portfolio, making it the largest cinema owner globally with 627 theatres and over 7,600 screens across eight countries.
AMC, majority-owned by Chinese billionaire Wang Jianlin's Dalian Wanda Group, will assume £407 million of net debt as part of the deal. Odeon & UCI, which Hands had been seeking to sell for several years, will remain headquartered in London and operate as a subsidiary of AMC.
Terra Firma originally acquired the UCI and Odeon chains separately in late 2004 and merged them to create Europe's largest cinema chain. In the first quarter of 2016, the group reported a 10% rise in revenue to £209 million and EBITDA of £30.7 million, boosted by hits such as Deadpool and The Revenant. It also announced plans to open 20 new cinemas across Europe by 2020, including eight in the UK.
AMC stated it remains committed to closing its $1.1 billion acquisition of Carmike Cinemas in the US, though the deal faces considerable risk after Carmike adjourned a shareholder vote last month. The company said it would continue discussions with Carmike to determine if the transaction can be saved.
