Private equity firm Abry Partners has agreed to acquire US-based cinema marketing distributor Screenvision, enabling cinema chain AMC Entertainment and Shamrock Capital Advisors to reduce their stakes.
AMC Entertainment expects to receive approximately $45m from the transaction, which aligns with its goal of generating approximately $400m from non-strategic assets over the next two years.
Screenvision confirmed on social media that the full transaction had generated $380m.
Screenvision Media provides cinema marketing packages that offer clients the opportunity to engage potential customers before and after their chosen movie, as well as during advertising time booked on the big screen.
Services provided include interactive gameplay and the opportunity to profile moviegoers for further communications.
Abry Partners expects Screenvision to perform strongly given what it regards as cinema advertising’s favourable position compared to other marketing channels.
AMC Entertainment gained its stake in Screenvision after acquiring movie theatre chain Carmike Cinemas in December 2016, a deal which resulted in AMC cinemas being added to Screenvision’s marketing network.
Shamrock Capital’s Growth Fund II had bought a controlling stake in Screenvision in 2010, paying $80m to broadcasting group ITV and $60m to media services provider Technicolor, the latter of which retained an 18.8% interest following the deal.
John Partilla, chief executive of Screenvision Media, said: “Thanks to its scale and unrivalled impact, cinema advertising is uniquely positioned to benefit from eroding audiences on alternative media platforms.
“We are at an inflection point in the current media landscape, and the cinema advertising platform could not be more well-positioned for sustained future growth.”