Double Feature

AMC Entertainment Inc. (Kansas City, Mo.) has announced yesterday it will merge with the Loews Cineplex Entertainment Corp. (New York), combining the second- and third-largest move theater organizations in the world.

Together, AMC and Loews will manage 5900 screens across 30 states and 13 countries. This compares with the 6200 screens operated by the industry leader, the Regal Entertainment Group (Knoxville, Tenn.).

The deal comes at a time of declining box-office receipts and increasing use of DVDs, on-demand movies and premium cable movie channels at home. This year, ticket sales have declined versus the previous year for 16 weekends in a row, the worst such run since 1985.

Both companies are controlled by private firms, and the financial terms of their merger were not disclosed. Nor did they say whether they would close any theaters, or rename any locations. It is known, however, that AMC’s holding company, Marquee Holdings, will become the parent of Loews. Marquee Holdings is controlled by affiliates of J. P. Morgan Partners and Apollo Management, which acquired the company in December 2004 for $2 billion.

LCE Holdings, which owns Loews, includes affiliates of the investment firms Bain Capital Partners, Spectrum Equity Investors and the Carlyle Group.

The new combined company will operate from Kansas City as AMC Entertainment Inc.