The chain said in July that it would go on a shopping spree when it raised $88.1M through a secondary stock offering. “We are not seeing fixer-uppers or turnaround projects,” CEO David Passman told analysts at the time. Today’s deal seems to fit his criteria. It will provide Carmike with an additional 147 screens in three states — Florida, California, and Illinois — giving it a total of 2,681 at 257 theaters in 37 states. They shouldn’t need much work: “Muvico is a cinema technology leader and industry pioneer, with recent capital expenditures for digital projection system upgrades, IMAX and MuviXL large format screens, installations of cutting-edge sound, reserved seating and ticket kiosks, as well as additional facility enhancements,” Passman says. “We expect limited incremental maintenance capital expenditures on these acquired facilities over the near-term.” He adds that the deal will add Bogart’s Bar & Grill restaurants to Carmike theaters in Thousand Oaks, Calif. and Rosemont, Ill. which advances “our entry into the full-service food and beverage arena.” Seven of the nine theaters are in Florida and most have beer and wine service, entertainment centers, party rooms and conference facilities. The deal should boost revenues by $68M and cash flow by $5.4M and provides “a number of operational and cost synergy opportunities,” Passman says. Carmike will have a chance to discuss the deal with analysts tomorrow when it releases its Q3 earnings.
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