Carmike Cinemas Inc. has bought one of its cross-town rivals in Chattanooga as part of a $19 million deal to acquire 16 Rave Movie Theaters in a half dozen states.
The Columbus, Ga.-based movie theater chain announced Monday it has bought 16 Rave theaters, including the 18-screen theater on South Terrace Road in East Ridge.
Carmike CEO David Passman said the purchase "is a key, opportunistic development for Carmike as we recently embarked on a corporate mission of expanding our footprint to 300 theaters and 3,000 screens through attractive acquisitions."
Carmike, which already operates the Majestic 12 Cinema downtown, the Wynnsong 10 in East Brainerd and the Northgate 14 in Hixson, currently has 233 theaters with 2,245 screens in 35 states.
Rave Reviews Cinemas LLC, is owned by investment firm BV Investment Partners. The purchased theaters have 3-D-capable screens and seven include large Imax screens. The average age of the Rave theaters being bought by Carmike is only eight years.
The deal also includes about $100.4 million in assumed lease obligations, Carmike said.
Carmike said it will continue to employ the Rave workers at the theaters it bought.