COLUMBUS, Ga. (DJ) — Carmike Cinemas Inc. has entered into a letter of intent to acquire the remaining equity interest in Westwynn Theatres Inc. for 330,000 class A shares and $ 4 million principal amount of zero coupon subordinated notes.
The current size of Carmike’s equity interest the company was not disclosed.
The notes are convertible into 100,000 Carmike class A common shares. In addition, Carmike will redeem at par $ 11.6 million of Westwynn subordinated notes. The transaction, expected to close “later this summer,” will be effective June 11 and is subject to the negotiation of a definitive purchase agreement and other customary conditions.
The company said that Westwynn had revenues of about $ 60 million in 1992. Pro forma for the transaction, Carmike’s 1992 revenues would have exceeded $ 231 million. This acquisition is expected to result in “incremental earnings per share” beginning in the second quarter of 1993, Carmike said.
Westwynn was formed in September 1991 by Carmike, Citicorp Venture Capital and William Blair Venture Partners to acquire the assets of Excellence Theatres Corp.
Carmike has been managing the theaters since the formation of Westwynn. Westwynn owns 353 screens in 95 theaters in 12 states. With those screens, Carmike’s total now comes to 1,553.