MUMBAI: Carmike Cinemas, Inc has signed a letter of intent to acquire three Atlanta-area movie theatres with a total of 40 screens from MNM Theatres. The three MNM facilities are located in Atlanta, Hiram and Cumming, GA.
Presently, six of the circuit’s 40 screens are digitized and 3-D capable. Carmike plans to immediately begin converting the remaining 34 screens to digital cinema as well as installing additional 3-D screens.
Following completion of this transaction, Carmike will have 25 Georgia-based entertainment complexes. Carmike expects to close on the transaction in late third quarter or early fourth quarter. The acquisition is contingent upon Carmike’s completion of due diligence. MNM CEO Norman Shindler will continue to be involved in the operations of these theatres for a period of at least three years following the acquisition.
Shindler said, "We are very pleased to join Carmike Cinemas, as we share a similar operating philosophy centrally focused on serving theater-going patrons. I am certain that MNM’s loyal customers will be delighted to share in the benefit from Carmike’s position as a pioneering leader in digital and 3-D cinema, including the immediate conversion of all of our auditoriums to digital and the addition of cutting-edge RealD 3-D technology to further enhance the theatre-going experience."
Carmike Cinemas president and CEO David Passman said, "Despite being in the shadow of one of the country’s largest demographic markets, MNM Theatres provides the same small-town, customer-focused experience that Carmike patrons have come to enjoy. This experience has been fostered by Shindler, who with his entrepreneurial, operations expertise and knowledgeable, long-tenured associates, have created a high-quality, details matter approach that is congruent to Carmike’s philosophy. We expect Carmike to benefit immensely from Shindler’s continued involvement and welcome him and his team to the Carmike family. This purchase underscores Carmike’s strategic plan to increase screen count through accretive acquisitions and organic growth. We have previously announced signed commitments to open five new-builds in coming months and hope to announce more new Carmike theatres soon."