AMC Entertainment Acquires Four Rave Cinemas in New Markets
AMC Entertainment Inc. (AMC) a preeminent U.S. movie exhibitor, and Rave Reviews Cinemas, L.L.C., a portfolio company of BV Investment Partners (Rave), announced today that they have entered into a definitive agreement pursuant to which AMC will acquire four theatres owned by Rave and managed by Rave Cinemas, LLC under the "Rave Motion Pictures" brand. The four theatres have 61 all-digital screens, 46 percent of which are 3D capable. The theaters are in three markets new to the AMC portfolio; Montgomery, Ala., Destin, Fla., and Baton Rouge, La. (two theatres). Each theatre has obtained the No. 1 position in all three markets and the average age of the theatres is nine years, with numerous upgrades having occurred at each location since construction.
"With this strategic acquisition, we are adding new markets to our footprint and serving a new audience in the South and Southeast. We're very excited to bring our amazing movie-going experience to these new parts of the country."
"We are pleased to add these four theatres to our quality fleet of locations. This is a natural progression of business that we anticipated following our own acquisition by the Wanda Group," said Gerry Lopez, AMC CEO and president. "With this strategic acquisition, we are adding new markets to our footprint and serving a new audience in the South and Southeast. We're very excited to bring our amazing movie-going experience to these new parts of the country."
"We are pleased to be handing over the ownership of these four top notch theaters to such a high quality company as AMC. We thank all of our theater employees who have done an excellent job over the years and we also thank Rave Cinemas, LLC which has managed these theaters professionally and profitably for us since 2009," said Roy F. Coppedge III, Managing Director of BV Investment Partners.
Completion of the acquisition is subject to the satisfaction of customary closing conditions for transactions of this type.
Foros acted as financial advisor and Ropes & Gray LLP acted as legal counsel to Rave in this transaction.