AMC To Add 380 Theaters In $172 Million Starplex Cinemas Deal

AMC Entertainment Inc. announced Tuesdayit has agreed to purchase privately-held Starplex Cinemas for about $172 million cash. The deal, once completed, will see AMC operate 380 additional theaters with 5,300 screens, AMC said in a statement. AMC will finance the deal with cash on its balance sheet. There will be no dilution of AMC stock. And AMC's per-share earnings, EBITDA and cash flow accretion is expected to see a one-time transaction-related charge in 2016. AMC Chief Executive Gerry Lopez said the deal will bring the company 90 additional recliner seat screens. Box office receipts rose 11.3% in the second quarter from the year earlier period. Shares of AMC are up 22% in the year-to-date, while the S&P 500 has gained 2%.