'Main Event targets a different demographic, families with younger children, while Dave & Buster’s has primarily targeted young adults,” Sheehan said in a statement, per O'Donnell. The pairing will allow Dave & Buster's to expand into a previously untapped market and further hone its existing adult offerings, according to Kevin Sheehan, the company's chairman. Gilbert + Tobin is serving as legal advisor to Ardent Leisure.Main Event, a Coppell, Texas-based company that specializes in youth entertainment, birthday fun and laser tag, will remain a distinct brand following the deal. Morgan are serving as financial advisors to Main Event. Weil, Gotshal & Manges LLP is serving as legal advisor to Main Event, and Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal advisor to RedBird. and Canada.ĭeutsche Bank is serving as financial advisor and Kirkland & Ellis LLP is serving as legal advisor to Dave & Buster's. The eatertainment chain ended fiscal 2021 with 144 locations, and believes it has enough room for 230 throughout the U.S. In late March, Sheehan told analysts that Dave & Buster's business is 'on fire.' With COVID decreasing in February and March, same-store sales increased 5.4 percent in the first eight weeks of the first quarter. Walk-in business is up 9.1 percent quarter-to-date versus pre-pandemic times and special events business is down 42 percent, but that’s a huge turnaround from the 58 percent drop in Q4. “Together, we will be well positioned to leverage our collective experience and provide our consumers with a category defining entertainment experience.” “On behalf of the entire team at Main Event, we are excited to join the Dave & Buster’s family,” Morris said in a statement. Specific timing of closure is subject to certain conditions, including approval by Ardent Leisure stockholders and regulatory review. The all-cash transaction was unanimously approved by both boards of directors. When the purchase finalizes, the two sides expect roughly $20 million of synergies to be achieved within two years from store support center consolidation and supply chain efficiencies. Dave & Buster's will use cash on hand and committed bank financing to fund the acquisition. The $835 million price tag represents a 9x multiple of Main Event's 12-month adjusted EBITDA. We expect the acquisition to be accretive to growth and earnings.” 'Main Event’s existing footprint works well with Dave & Buster’s current geographies and each brand has significant growth opportunities. “While each brand will continue to operate independently, ownership of both brands enables us to expand the breadth of customers we serve together, while also enabling each brand to better differentiate its offering to its core consumer,' Sheehan said in a statement.

READ MORE: Main Event Reopens as a Redefined, Galvanized Brand The two concepts don't cannibalize each other either while Main Event targets families and children, Dave & Buster's goes after young adults. Sheehan described the transaction as a 'transformational combination,' noting that Main Event's model, footprint, and asset quality align well with Dave & Buster's. Both Main Event and Dave & Buster's headquarters are based in Texas. Main Event, which offers bowling, laser tag, arcade games, and virtual reality, operates 50 locations in 17 states, including The Summit, a three-unit eatertainment chain based in Colorado.

Sheehan will leave his position following the acquisition, but continue as chairman of the board. Before, he served as president of California Pizza Kitchen from September 2013 to March 2018, with previous stops as CFO at On The Border and CEC Entertainment. Morris has held the president and CEO role at Main Event since March 2018. He will be eligible to receive an annual target bonus equal to 100 percent of his base salary and is expected to be eligible for annual grants of long-term incentive awards with a target grant date value of 200 percent of his base salary. In the meantime, board chair Kevin Sheehan has served as interim CEO.Īs CEO, Morris will receive an annualized base salary of $750,000, effective as of the closing of the deal, according to filings. Dave & Buster's has been searching for a new CEO since Brian Jenkins retired at the end of September. When the transaction closes later this year, Main Event CEO Chris Morris will lead the combined company. Dave & Buster's announced Wednesday that it's spending $835 million to acquire fellow eatertainment chain Main Event from Ardent Leisure Group Limited and RedBird Capital Partners.

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