Cineworld Group and Cinemark Holdings have agreed to buy the remaining units of National CineMedia currently owned by AMC Entertainment, 21.5 million units for approximately $156.8 million. Cineworld and Cinemark will each acquire half of the units and will fund the transaction with available cash.
This transaction fulfills AMC’s requirement to sell its interest in NCM under the consent decree with the U.S. Department of Justice in connection with AMC’s acquisition of Carmike Cinemas, Inc. in December 2016.
Mooky Greidinger, Cineworld’s chief executive officer said, “We are delighted to further strengthen the successful and longstanding partnership between Cinemark, Cineworld and National CineMedia. Our increased investment in NCM also supports our strategy to reinforce our presence in the United States following the recently completed acquisition of Regal Entertainment Group.”
Mark Zoradi, Cinemark’s chief executive officer said, “National CineMedia remains an important component of our business model and we are thrilled to have partnered with Cineworld to solidify the strategic ownership of NCM by founding members. We greatly look forward to working even more closely with NCM’s board of directors and management team to further enhance and grow the cinema advertising business.”
Andy England, NCM’s chief executive officer said, “We value the tremendous vote of confidence demonstrated by Cineworld and Cinemark’s increased investment in our company. We are pleased to deepen the collaboration with two of our founding members on our future business plans and strategies for continued financial growth. In addition, we look forward to continuing to work closely with AMC and servicing their cinema advertising needs under our Exhibitor Service Agreement, which has approximately 19 years remaining.”
Adam Aron, AMC’s chief executive officer and president said,“While AMC will no longer be a shareholder of National CineMedia, we do look forward to our continued close cooperation with NCM in the sale of pre-show onscreen advertising at a majority of AMC’s U.S. theatres.”
National CineMedia http://www.ncm.com