×

Brexit presents ‘bargains’ for US companies, AMC CEO says

As the British pound hits historic lows against the U.S. dollar following the rexit vote, it may be a good time for U.S. companies to go shopping, AMC Theatre CEO Adam Aron said Tuesday.

"There are some real bargains to be had in Europe for American companies," Aron told CNBC's "Squawk Box."

The pound sterling hit a 31-year low against the dollar last week, pushing it below 1.30 after weak data from the services industry, and a financial stability report by the Bank of England. The central bank hinted that more quantitative easing may on the table for this summer.

"We might be the first company to announce a billion-dollar acquisition in Europe, taking advantage of the currency exchange rate," Aron said. "But I don't think we'll be the last."

AMC on Tuesday announced a deal to buy London-based Odeon & UCI Cinemas Group in a deal valued at about 921 million pounds, or $1.21 billion, making AMC the world's largest movie theater operator, according to Reuters. AMC said it would take on roughly $535 million in debt as part of the deal to buy the theater operator from private equity firm Terra Firma.

Odeon and UCI will operate in London as a subsidiary of AMC. But Aron said AMC will be bringing new amenities like reclining seat and alcoholic bars in theater lobbies.

The company is also working on a $1.1 billion acquisition of U.S.-based Carmike Cinemas, which was stalled after a shareholder vote last month, according to Reuters.

"We're committed to both deals," Aron said. "We are going to be talking with Carmike this week to see if there's ways to salvage the deal."