AMC Entertainment said Monday it’s agreed to sell its nine theaters in the Baltic region (Latvia, Lithuania and Estonia) to UP Invest for €65 million (about $77 million) as it continues to shore up its balance sheet.
The move follows a capital raise and debt restructuring in July to bolster liquidity and strengthen its balance sheet, said CEO Adam Aron. He said the deal purchase price represents a 9.3x multiple of anticipated 2020 EBITDA (earnings before interest, taxes, depreciation and amortization) before the onset of COVID-19, which AMC called an attractive “transaction multiple that underscores the inherent value of our theatre portfolio and resilience of our business.”
“We continue to be encouraged by attendance levels at theatres that have reopened in Europe, where essentially all theatres are open, and in the U.S., where almost 300 theatres are currently open for business,” he added. “Growing consumer confidence in our cleaning and safety protocols continues to generate increased attendance and food and beverage spend, and we look forward to offering a full slate of new and entertaining film product to further drive attendance over the remainder of 2020.”
The agreement calls for AMC to receive about half of the sale proceeds on signing and the balance upon closing in each country after antitrust resolution in the coming months.
Related Deadline Video:
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.