The deal adds 37 screens and five theaters to Carmike’s network, including locations in San Francisco, West Hollywood, Houston, Seattle and Madison, Wis. The chain is owned by actor Robert Redford’s Sundance Group.
After the transaction is complete, Carmike will operate 274 theaters with 2,909 screens in 41 states. In June, Sundance Cinemas tapped Salem Partners LLC, a Los Angeles-based investment bank, to find a buyer.
The move comes during a period of consolidation in the U.S. exhibition space and at a time when many theaters are adding extra amenities as a way of differentiating the experiences they offer from the one made possible by improved home entertainment systems. Sundance has embraced that philosophy since its launch in 2007. The chain boasts reserved seating for all shows, as well as bistro fare, and cocktails, beer and wine at several locations.
“We expect that this acquisition will allow Carmike to capture proportionally higher attendance rates for non-blockbuster titles and provide additional luxury expansion opportunities and meaningful cost synergies as we increase scale to optimize film exhibition and other support costs,” said Carmike’s President and CEO David Passman in a statement.
Carmike said the acquisition is projected to add incremental revenue of $24 million and EBITDA of $5.6 million to its financials. The company’s stock was trading up .41% at $22.04 in after-hours trading.