AMC Theaters to Acquire Nordic Cinema Group
AMC Entertainment Holdings, Inc. (NYSE: AMC) announced on January 23rd that it has entered into a definitive agreement to acquire Nordic Cinema Group Holding AB (“Nordic”). Nordic Cinema Group is the largest cinema operator in the Nordic and Baltic countries, that currently operates over 68 theaters in almost 50 major and mid-sized cities in the region. This will represent a larger market share for AMC, which currently operates over 900 theaters and more than 10,000 screens across the globe. Under the terms of the deal, Nordic will maintain their headquartered operations in Stockholm, but will operate as a subsidiary of Odeon Cinemas Group, which AMC acquired in November 2016. Below is the rationale AMC identified in pursuing the acquisition of Nordic:
- Highly profitable circuit with minimal deferred capital expenditures
- #1 market share leadership position
- Strong value proposition from a pipeline of development theaters
- Extremely well run company and able management team
- Solidifies AMC’s #1 position and expands global platform
Under the agreement, AMC will purchase Nordic from European private equity firm Bridgepoint and Swedish media group Bonnier Holding, in an all-cash transaction valued at $929 million. Under the financing plan, there will be a mix of term loans, bonds, and AMC equity, which will create an adjusted EBITDA of 4.7x. The transaction has already been approved by AMC’s board and Nordic’s ownership group. The transaction is expected to be completed before June 30, 2017.
Read the full press release at www.amctheatres.com
Below are highlights of additional Merger and Acquisition activity from the last week:
Energy Sector M&A News: Noble Energy, Inc. (NYSE: NBL) and Clayton Williams Energy, Inc. (NYSE: CWEI) announced on January 16th that they have entered a definitive agreement for Noble to acquire the outstanding common stock of Clayton for $2.7 billion.
Read more at www.nobleenergyinc.com
Pharmaceutical M&A News:: On January 18th, Eli Lilly and Company (NYSE: LLY) announced it will acquire CoLucid Pharmaceuticals, Inc. (Nasdaq: CLCD) for $46.50 per share or approximately $960 million. Eli Lilly is a global healthcare leader that creates high-quality medicines. CoLucid develops lasmiditan oral tablets for the acute treatment of migraine headaches in adults.
Read more at www.lilly.com
Technology M&A News: : On January 19th, Sphere 3D Corporation (Nasdaq: ANY), a containerization , virtualization, and data management solutions provider announced it has entered into a definitive agreement to acquire HVE ConneXions, LLC, and Unified ConneXions, Inc. (Collectively, “UCX”). HVE is one of the fastest growing technology providers of next generation storage and virtualization solutions. Unified ConneXions provides professional IT and systems engineering services.
Read more at www.sphere3d.com
