The company that owns the Carmike 15 movie theater in Apple Valley has purchased a group of theaters located mainly in the southeastern United States.
In addition to the Apple Valley theater, Carmike Cinemas owns and operates theater complexes in Mankato, Mounds View, New Ulm, Oakdale and Willmar in Minnesota. As of June 30, it had 233 theaters with 2,245 screens nationwide.
None of the theaters involved in Monday’s transaction are in Minnesota. The Rave Reviews theaters are in Alabama, Florida, Indiana, Illinois, Pennsylvania and Texas.
“The addition of these 16 state-of-the-art theatres and 251 screens from Rave is a key, opportunistic development for Carmike as we recently embarked on a corporate mission of expanding our footprint to 300 theatres and 3,000 screens through attractive acquisitions,” Carmike President and Chief Executive Officer David Passman says in a press release announcing the sale. “Importantly, seven of these theatres are leaders in their respective markets and another four are the number two box office generators in their region. The average age of the properties we are acquiring is only eight years so we expect limited maintenance capital expenditure requirements on the facilities over the near-term. We also look forward to enthusiastically welcoming the Rave associates at these theatres to the growing Carmike family.”
Columbus, GA-based Carmike Cinemas will pay $19 million in cash and take on $100.4 million in lease obligations to obtain the Rave Reviews theaters, according to the press release.