AMC Entertainment Holdings Inc has agreed to purchase Carmike Cinemas Inc. The latest deal will make Chinese-owned AMC as the largest move-theater operator in the US. The $1.1-billion deal is expected to consolidate the US cinema industry. The acquisition deal is expected to be completed by end of 2016.

China's Dalian Wanda Group-controlled AME Entertainment Holdings will buy Carmike Cinemas. After the deal, AMC Entertainment Holdings will be the largest cinema operating chain in the US with over 600 theaters. AMC Entertainment Holdings has agreed to pay $737 million in cash.

AMC Entertainment Holdings Inc will pay $30 per share to Carmike in a cash deal. Including Carmike's debt, the total deal cost will be $1.1 billion. The purchasing price is estimated to be 20 percent premium to Carmike considering its closing share price at $25.11 on Nasdaq, according to The Wall Street Journal (WSJ).

AMC Entertainment Holdings returned to public markets via stock sale in 2013. Since then, the latest deal is the biggest for AMC Entertainment. Chinese billionaire Wang Jianlin of Dalian Wanda Group will have controlling stake in AMC Entertainment Holdings. The latest deal will consolidate the American cinema industry.

Dalian Wanda, a Chinese-owned film production and finance company, in January agreed to purchase Legendary Entertainment for $3.5 billion. Legendary Entertainment studio had contributed to blockbusters such as Jurassic World and The Dark Knight. Dalian Wanda acquired AMC Entertainment Holdings for $2.6 billion in 2012. The company is building a large commercial and residential complex in Beverly Hills, California. The acquisition transaction may be completed by end of 2016, as reported by The New York Times.

Both the companies are waiting for regulatory approvals and Carmike shareholders as well. Adam Aron, AMC's chief executive, said in a statement: "This is a compelling transaction that brings together two great companies with complementary strengths to create substantial value for our guests and shareholders."

Wang Jianlin has been exploring ways and options to buy a Hollywood studio for several years. He held negotiations with DreamWorks Animation in 2015, but the deal couldn't take off. Established in 1988, Dalian Wanda is China's biggest commercial real estate firm. Wanda is in expansion mode on movie cinemas, theme parks and film production, as reported by BBC.

Based in Leawood, Kan, AMC Entertainment Holdings is second biggest movie theater chain in the US after Regal Entertainment Group. AMC Entertainment has 5,426 screens in 387 locations across the US with strong presence in New York, Los Angeles and Chicago. Columbus-based Carmike has 276 theaters with 2,954 screens mostly in midsize cities. After the acquisition, the headquarters of combined entity will be in Leawood.