Chinese Company Buys AMC Movie Theaters
Chinese entertainment group Dailan Wanda Group announced it will buy U.S. movie theaters chain AMC for $2.6 billion.
As part of the transaction, Wanda intends to invest up to an additional US$500 million in AMC over time to fund AMC's strategic and operating initiatives and secure the employment of AMC's management team.
"We share with AMC a passion for the growth of the worldwide movie industry. We look forward to partnering with AMC's management team and employees to build on the many strengths of the company," said Wanda chairman Wang Jianlin in a statement Sunday.
According to firm Dealogic, the deal is the third-largest Chinese corporate investment in the U.S.
AMC Entertainment owns the second-largest movie theater chain in North America.
Wanda Group is China's largest entertainment group.
AMC operates 346 multiplex theatres mostly located in major metropolitan markets in North America, and a total of 5,034 screens, including 2,336 3-D screens and 128 IMAX screens, making it the world's largest operator of IMAX screens.
Approximately 200 million people watched movies in AMC theatres in 2011. Privately held AMC's ownership group includes Apollo Global Management, Bain Capital, the Carlyle Group, CCMP Capital Advisors and Spectrum Equity Investors. Upon closing of the transaction, AMC will become a wholly owned subsidiary of Wanda.
