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Timothy Fadek/Bloomberg
Dave & Buster’s Entertainment
,
the entertainment and dining venue, said on Wednesday it had bought Main Event in a deal that values the family entertainment company at $835 million, including debt.
Once the deal closes, Main Event chief executive Chris Morris will become CEO of
Dave & Buster’s
(ticker: PLAY), taking over from Kevin Sheehan who has held the role since October, the company said in a statement. Main Event was bought from owners Ardent Leisure Group and RedBird Capital Partners.
The all-cash deal is expected to close later this year, subject to approval by
Ardent Leisure
(ticker: ALG.AU) stockholders and regulatory review.
Dave & Buster’s expects the acquisition to add to both earnings and growth, and achieve cost savings of $20 million within the first two years from consolidating store support centers and supply-chain efficiencies.
Main Event operates 50 locations across the U.S. including three recently acquired locations in Colorado, providing art bowling, laser tag and hundreds of arcade games.
“From a strategic fit perspective, Main Event’s business model, footprint and asset quality aligns well with Dave & Buster’s,” Sheehan said. “Main Event targets a different demographic, families with younger children, while Dave & Buster’s has primarily targeted young adults.”
Each brand will continue to operate independently after the deal closes, Sheehan added.
Dave & Buster’s stock has risen 20.83% so far this year.
Write to Lina Saigol at lina.saigol@dowjones.com
