PDF Research Report: Carmike Cinemas

On March 3rd, AMC Entertainment announced a deal in which they are proposing to acquire 100% of Carmike Cinemas in an all-cash transaction. The deal is expected to finish by the end of 2016, with synergies large enough to make the transaction accretive in 2017. AMC Entertainment is set to pay an acquisition multiple of 8.07x Carmike’s EBITDA, making the proposal one of the cheapest in recent history despite claims by the two companies stating otherwise. Shareholders of Carmike are taking action to demand a more equitable offer for their ownership. In this report, I explore the actions taken by the Board leading up to the transaction and an analysis of the current valuation which I very conservatively believe left over $150,000,000 on the table for Carmike shareholders.

PDF Research Report: Carmike Cinemas