AMC Entertainment has agreed to buy four theaters owned by Rave Reviews Cinemas. Financial terms weren’t announced. Two of the theaters are located in Baton Rouge, La. while one is in Montgomery, Ala. and another is in Montgomery, Ala. Rave Reviews is backed by BV Investment Partners.
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., Montgomery, Ala.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.
“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.
Certain statements in this press release, as well as reports and other information that AMC files with the Securities and Exchange Commission, include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, which may cause AMC’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
About AMC Theatres
AMC Theatres® delivers distinctive and affordable movie-going experiences in 332 theatres and 4,804 screens throughout the United States. AMC operates 25 of the 50 highest grossing theatres in the United States, including four of the top five. AMC has propelled industry innovation and continues today by delivering premium sight and sound, enhanced food and beverage and diverse content to an engaged audience in state-of-the-art buildings. www.amctheatres.com
About BV Investment Partners
BV Investment Partners is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $2.6 billion in over 75 companies, actively targeting investments in the information and business services and communications industries. For more information, please visit www.bvlp.com.