LEAWOOD, KS and DALLAS—AMC Theatres and Dallas-based Starplex Cinemas said Tuesday they had entered into a definitive purchase agreement for AMC to acquire Starplex for approximately $172 million in cash. The acquisition will give Leawood, KS-based AMC, the nation's second-largest theater chain after Regal Entertainment Group, an additional 33 locations with 346 screens in 12 states, bringing its total to about 380 theatres with 5,300 screens.

“Starplex and AMC have a shared vision to provide a quality guest experience, and even more of our guests will now benefit from recliner re-seats and other great amenities,” says Starplex CEO Steve Holmes. The agreement with AMC, he adds, gives Starplex shareholders “meaningful and immediate value.”

The acquisition will increase AMC's presence in states where it already has a presence: California, Connecticut, Kansas, Illinois, Missouri, Nebraska, New Jersey, Ohio, Oklahoma, Texas, Virginia and Washington. AMC says the geographic overlap will be minimal. “Our large- market theatre portfolio will be complemented by new small and mid-size market theatres, which gives AMC broader movie genre appeal across a wider spectrum of guests,” says CEO Gerry Lopez.

Owned since 2012 by the China-based Dalian Wanda Group, AMC has grown its footprint organically and via acquisitions of both regional and national chains over the past 15 years. Its acquisitions of General Cinema Corp. and Gulf States Theatres (both in 2002), MegaStar Theatres (2003), Loews Cineplex Entertainment (2006) and Kerasotes Theatres (2010) expanded its presence in some of the largest markets across the US, including New York City, Los Angeles and Chicago.

For Starplex, the AMC deal will mark its second M&A transaction in the past few years. In 2012, it merged with another chain headquartered in the Kansas City metro area, ShowPlex Cinemas, then based in Overland Park, KS.

Husch Blackwell LLP is serving as AMC's lead legal advisor. Peter J. Solomon Co. is serving as exclusive financial advisor to Starplex and Andrews Kurth LLP is serving as its legal advisor.