AMC has acquired London-based Odeon & UCI Cinemas Group from private equity firm Terra Firma in a transaction valued at approximately £921 million ($1.266 billion) comprised of £500 million ($626 million) for the equity, 75% in cash and 25% in stock consideration, subject to lock-ups, and the assumption of £407 million ($535 million) of net debt as of March 31, 2016 to be simultaneously refinanced at closing.

Assuming the transaction closes December 31, 2016 and a GBP/USD exchange rate of 1.30 the transaction is valued at approximately $1.199 billion under UK GAAP.

Citigroup Global Markets arranged debt financing.

In connection with the transaction, the company will make adjustments to conform Odeon and UCI financial statements to U.S. GAAP. Those adjustments primarily include currency translation and the adjustment of certain operating leases to capital and financing lease obligations, with those obligations totaling approximately $195 million in additional debt.

The transaction is conditional upon antitrust clearance by the European Commission and is subject to consultation with the European Works Council.

“This is a once-in-a-generation opportunity to acquire Europe’s leading cinema chain and create the world’s biggest and best theatre operator,” said AMC CEO and President Adam Aron.

The combination of AMC and Odeon & UCI will result in AMC’s operation of 627 theatres and more than 7,600 screens in eight countries. AMC will continue to be headquartered in Leawood, KS. Odeon & UCI will continue to be headquartered in London and will operate as a subsidiary of AMC.