China's Dalian Wanda Group Co., Ltd. and AMC Entertainment Holdings, Inc., a preeminent U.S. movie exhibitor, have signed an agreement for Wanda to acquire AMC, thus creating the world's largest cinema owner. The transaction is valued at about $2.6 billion.
Wanda is a private conglomerate and China's largest investor in cultural and entertainment activities. The company has more than $1.6 billion invested in such activities since 2005.
AMC's ownership group includes Apollo Global Management, Bain Capital, the Carlyle Group, CCMP Capital Advisors and Spectrum Equity Investors. When the transaction is completed, AMC will become a wholly-owned subsidiary of Wanda.
Wang Jianlin, Chairman and President of Wanda, said, "This acquisition will help make Wanda a truly global cinema owner, with theatres and technology that enhance the movie-going experience for audiences in the world's two largest movie markets."
Wanda has provided to AMC financing commitments to fully finance the deal. As part of the transaction, Wanda intends to invest up to an additional $500 million in AMC over time to fund AMC's strategic and operating initiatives.
AMC currently has 18,500 employees and the deal is not expected to have an impact on employee levels. Wanda has also reached an agreement to secure the employment of AMC's management team.
AMC's headquarters will remain in the Kansas City metropolitan area. Its day-to-day operations, including the process for film programming, will remain unchanged.
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