Dave & Buster’s Announces Acquisition of Main Event for

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DALLAS, April 06, 2022 (GLOBE NEWSWIRE) — Dave & Buster’s Entertainment, Inc., (NASDAQ: PLAY), (“Dave & Buster’s” or “the Company”), an owner and operator of entertainment and dining venues, announcement today announced that it has entered into an agreement to acquire Main Event from Ardent Leisure Group Limited (ASX:ALG) (“Ardent Leisure”) and RedBird Capital Partners (“RedBird”). At closing, Chris Morris, the current CEO of Main Event will be named CEO of Dave & Buster’s.

Main Event is a family entertainment concept with 50 locations across the United States, including three recently acquired The Summit locations in Colorado. The all-cash transaction, which was unanimously approved by both boards, represents a total enterprise value of $835 million. The transaction is expected to close later this year, but the exact timing of closing is subject to customary closing conditions, including Ardent Leisure shareholder approval and regulatory review.

The purchase price represents an unsynergized valuation multiple of approximately 9x Main Event 12-month Adjusted EBITDA to December 31, 2021 and the Company expects that upon closing of the transaction, there will be have approximately $20 million in synergies to be realized in the first two years from store support center consolidation and supply chain efficiencies. The Company expects the acquisition to be accretive to both earnings and growth. Dave & Buster’s expects to use available cash and proceeds from committed bank financing to fund the acquisition. Deutsche Bank Securities Inc., JPMorgan Chase Bank, NA and BMO Capital Markets Corp. are the lead arrangers and joint bookrunners for the committed financing.

“We are thrilled to welcome Main Event to the Dave & Buster family,” said Kevin Sheehan, Chairman of the Board and Interim CEO. “This is a transformational combination for both brands. From a strategic perspective, Main Event’s business model, footprint and asset quality aligns well with that of Dave & Buster. Main Event targets a different demographic, families with young children, while Dave & Buster’s primarily targets young adults. Although each brand will continue to operate independently, ownership of both brands allows us to expand the range of customers we serve together, while also allowing each brand to better differentiate its offering to its primary consumer. Main Event’s existing footprint works well with Dave & Buster’s current geographies and each brand has significant growth opportunities. We expect the acquisition to be accretive to growth and earnings.

Mr. Sheehan continued, “As we got to know Chris Morris, we were very impressed with his ability to execute and his focus on profitable growth. Chris is a proven and successful transformational leader who is capable of taking the new organization to the next level. He has been particularly successful in improving and innovating the Main Event guest experience and we hope this continues in his new role overseeing both brands.

The company also noted that in addition to expanding the demographic of targeted customers, it expects team members from both brands to have expanded career growth opportunities, both within the brands and ‘between them.

“On behalf of the entire Main Event team, we are thrilled to join the Dave & Buster family,” said Main Event General Manager Chris Morris. “Together, we will be well positioned to leverage our collective experience and provide our consumers with a category-defining entertainment experience.”

Deutsche Bank is acting as financial advisor and Kirkland & Ellis LLP as legal advisor to Dave & Buster’s. Goldman Sachs and JP Morgan are the Main Event’s financial advisors. Weil, Gotshal & Manges LLP is legal counsel to Main Event, and Fried, Frank, Harris, Shriver & Jacobson LLP is legal counsel to RedBird. Gilbert + Tobin is legal counsel to Ardent Leisure.

Investor Day

Upon closing of the transaction later this year, the Company will host an Investor Day to further discuss this news and the anticipated benefits of this combination.

About Dave & Buster’s Entertainment, Inc.

Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster’s Entertainment, Inc. owns and operates 145 locations across North America that combine entertainment and dining and offer customers the opportunity to “Eat, Drink, Play and Watch” , all in one location. Dave & Buster’s offers an extensive menu of entrees and appetizers, a comprehensive selection of alcoholic and non-alcoholic beverages, and a wide assortment of entertainment attractions centered around gaming and watching live sports and other televised events . Dave & Buster’s currently has stores in 40 states, Puerto Rico and Canada.

About the main event

Founded in 1998, Dallas-based Main Event operates 50 centers in 17 states across the country. The Main Event offers the most fun under one roof with state-of-the-art bowling, laser tag, hundreds of arcade games and virtual reality, making it the perfect place for families to connect and create memories. Main Event is a major sponsor of Special Olympics International, supporting through fundraising and serving as a venue for Special Olympics events nationwide. Main Event is also a proud partner of the Dallas Cowboys. For more information, visit mainevent.com

About Ardent Leisure Group

Ardent Leisure (ASX: ALG) is one of Australia’s most successful leisure and entertainment groups. Owners and operators of premium leisure assets, including Dreamworld, WhiteWater World and SkyPoint theme parks and attractions, as well as Main Event, which is a growing portfolio of family entertainment assets in the United States. Ardent Leisure businesses hold leading positions in the affordable, family, leisure and entertainment categories. As a group, Ardent Leisure serves over 3 million customers annually and has developed many communication opportunities to interact and transact with these customers. For more information, visit www.ardentleisure.com.

About RedBird Capital Partners

RedBird Capital Partners is a private investment firm focused on building high-growth businesses alongside entrepreneurs in its four areas of expertise: sports, media, consumer and financial services. Founded by former Goldman Sachs partner Gerry Cardinale in 2014, RedBird today manages over $6 billion in capital on behalf of a highly organized group of blue-chip global institutional investors and family offices. RedBird’s network of entrepreneurs is at the heart of its investment-seeking and business-building strategy that helps founders achieve their business goals and long-term vision. Since its inception, RedBird has invested in over 30 platform companies and 80 add-on acquisitions with a total enterprise value of over $30 billion. For more information, visit www.redbirdcap.com.

Forward-looking statements

The Company cautions that this release contains forward-looking statements, including, without limitation, statements relating to the impact on our business and operations of the coronavirus pandemic and our pending acquisition of Main Event (the “Acquisition”). These forward-looking statements involve risks and uncertainties and, accordingly, could be affected by the uncertain and unprecedented impact of the pandemic and novel coronavirus variants on our business and operations and the related impact on our liquidity needs. ; our ability to continue as a going concern; our ability to complete the acquisition on terms that are favorable to us or not at all; our ability to realize the expected benefits of the Acquisition: the possibility that Ardent Leisure shareholders may not approve the merger agreement; the risk that a condition to closing the Acquisition will not be satisfied, that either party will terminate the merger agreement or that the closing of the Acquisition will be delayed or not occur at all ; potential adverse reactions or changes in business or employee relationships, including those resulting from the announcement or completion of the acquisition; diversion of management’s time on transaction-related matters; the timing, outcome and ultimate results of the integration of the operations of the Company and Main Event; the effects of the acquisition, including the combined company’s future financial condition, results of operations, strategy and plans; the ability of the combined company to realize the anticipated synergies within the expected time frame or at all; changes in capital markets and the combined company’s ability to fund the acquisition and future transactions as expected; regulatory approval of the transaction; the fact that operating costs and business disruption could be greater than expected following the public announcement or completion of the proposed transaction; our ability to obtain waivers, and thereafter continue to satisfy covenant requirements, under our revolving credit facility; our ability to access other sources of funding; the implementation and duration of government-mandated and voluntary closures and restrictions; how quickly our stores can be safely reopened and fully operated and the level of customer demand following reopening and full operations; the economic impact of the pandemic and related disruptions on the communities we serve; our overall level of indebtedness; general business and economic conditions, including due to the pandemic; the impact of competition; the seasonal nature of the Company’s activities; Adverse weather conditions; future commodity prices; customer and employee complaints and disputes; fuel and utility costs; labor costs and availability; changes in consumer and business spending, including as a result of the pandemic; changes in demographic trends; changes in government regulations; adverse publicity, our ability to open new stores and acts of God. Therefore, actual results may differ materially from forward-looking statements, and the Company cautions you against reliance on such forward-looking statements. Dave & Buster’s understands that these forward-looking statements speak only as of the time of this release and does not undertake to update or revise them as more appropriate information becomes available, except as required by law. requires it.

For investor relations inquiries:
Michael Quartieri, SVP and CFO Dave & Buster’s Entertainment, Inc.
(972) 813-1151
michael.quartieri@daveandbusters.com

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