The company’s existing owners, Shamrock Capital and AMC Entertainment, will retain minority positions in the cinema advertising company. Terms of the deal were not disclosed, but a source with knowledge of the pact confirmed that Screenvision sold for $380 million. The sale is expected to be finalized this summer.
In 2014, Screenvision attempted to merge with National Cinemedia, another provider of in-theater advertising, but the Justice Department blocked the sale citing anti-trust concerns. Last year, the company said it achieved record revenues and in a release announcing the sale it claimed to have tripled its profitability over the past three years.
“We see a very bright future for Screenvision,” said John Hunt, managing partner of Abry Partners, in a statement. “We look forward to partnering alongside and investing with their first-rate management team to help further unlock future growth for the company as well as their leading network of exhibitors.”
AMC said it expects to receive $45 million in cash for its stake. After going on a buying spree in recent years with its purchase of Odeon Cinemas Group and Carmike Cinemas, AMC has begun to deleverage itself by selling off assets it terms “non-strategic.” Recently, the theater chain sold its 50% stake in Open Road Releasing, for $14.4 million, off-loaded shares of National CineMedia for for $98.5 million, and generated $128 million from a half-dozen sale leaseback agreements. The Screenvision stake is simply the latest such deal. AMC acquired its position in the company when it bought Carmike.
Moelis & Company served as financial adviser and Latham & Watkins LLP as legal adviser to Shamrock Capital on the Screenvision transaction. LionTree Advisors served as financial advisers and Kirkland & Ellis as legal adviser for Abry Partners. Deutsche Bank will provide debt financing for the purchase.