AMC to buy Odeon
American cinema giant, AMC Entertainment, has flexed their muscles while the post Brexit pound wobbles, to pounce on London-based Odeon & UCI Cinemas.
They'll be buying it for somewhere in the region of £921 million, including debt.
The terms of the agreement says that AMC will pay Terra Firma £500 million in a mix of stock and cash, as well as taking on the company's £407 million in net debt.
This is the first big sale of a UK business since the EU Referendum, and could be the first of many while companies nervously decide to stick or twist, while the pound is weakened.
Odeon has 242 theatres and 2,236 screens across Europe, and is the leading cinema chain in the UK and Ireland.
With AMC taking over, as well as a separate deal to take on US chain Carmike, it will make AMC the largest cinema chain in the entire world. You can expect someone will have something to say about competition.
"This is a once-in-a-generation opportunity to acquire Europe's leading cinema chain and create the world's biggest and best theatre operator," said AMC CEO and President Adam Aron.
"With this opportunistic transaction, AMC will be extending the reach of our proven guest experience strategies to transform the movie-going experience for millions of movie goers in Europe."
TOPICS: High Street News