Carmike Cinemas has signed a definitive agreement to purchase 16 entertainment complexes with an aggregate of 251 screens based in seven states and 13 individual markets from Rave Cinemas. The purchase price consists of $19 million in cash subject to customary working capital adjustments and $100.4 million of assumed lease obligations comprised of capital leases and financing obligations. Carmike Cinemas president and chief executive officer David Passman said The addition of these 16 state-of-the-art theatres and 251screens from Rave is a key opportunistic development for Carmike as we recently embarked on a corporate mission of expanding our footprint to 300 theatres and 3 000 screens through attractive acquisitions. Importantly seven of these theatres are leaders in their respective markets and another four are the number two box office generators in their region. The average age of the properties we are acquiring is only eight years so we expect limited maintenance capital expenditure requirements on the facilities over the near-term. We also look forward to enthusiastically welcoming the Rave associates at these theatres to the growing Carmike family. The 16 theatres are currently managed by Rave Cinemas under the Rave Motion Pictures brand. All 251 auditoriums have full digital projection and stadium seating. Approximately 40 percent of the screens are 3D-capable and seven theatres include IMAX large format screens. Carmike already has 14 Big D large format digital experience screens in place throughout the country. Of the 16 theatres being acquired six are located in Alabama four in Florida two in Indiana and one each in Illinois Pennsylvania Tennessee and Texas. All 251 screens are participants in the Screenvision Cinema Network.
