Hadley Malcolm

USA TODAY

AMC Theatres will acquire competitor Carmike Cinemas in a $1.1 billion deal that will make the combined company the largest movie theater chain in the country.

Announcing the deal Thursday, AMC CEO Adam Aron said the acquisition will help AMC expand its geographic reach and cater to millions of new customers. AMC has 387 theaters, primarily concentrated in larger markets including Los Angeles, Chicago and New York. Carmike operates 276 theaters, generally in mid-size communities. The new company would have more theaters than the current leader, Regal Entertainment Group, which has 572 theaters.

AMC will pay $30 per share in cash to acquire Carmike's outstanding shares. It's financing the deal with existing liquidity, cash on hand and incremental debt. The deal is expected to close by the end of the year.

AMC plans to bring its higher-end experience, such as premium food and drinks and plush recliners, to Carmike locations. AMC "gets to extend the reach of our innovative, guest-experience strategies to further transform the movie-going experience for millions of new guests," Aron said in a company statement.

Carmike CEO David Passman also said the two chains have limited overlap.

"By joining with AMC, we are bringing together two highly complementary theater footprints and a shared commitment to service and innovation, positioning the combined company to deliver an even more compelling movie-going experience in many more locations across the country," he said in a statement.