SYDNEY, AUSTRALIA: Ardent Leisure Group and RedBird Capital Partners have entered right into a binding settlement with Dave & Buster’s for the sale of Main Event Entertainment Inc. for money consideration of $835 million, a bourse submitting said.
Ardent Leisure will use the proceeds to repay its excellent debt facility to the Queensland Treasury Corporation and the deferred settlement payable to the ATO, pay Transaction costs, fund the continued growth and funding within the Theme Parks business.
If the transaction completes, Ardent Leisure will obtain roughly $487m in money for its 72.6% stake after repayment of debt in Main Event, funds to Main Event administration under the existing Main Event Long Term Incentive Plan and in respect of shares owned by management, transaction prices and different transaction adjustments, however earlier than the Purchase Price Adjustments.
This displays Ardent Leisure’s share of the net proceeds of the Transaction having regard to its fairness curiosity in Main Event and an settlement with RedBird in relation to the sharing of proceeds in respect of the portion of Ardent Leisure’s holdings in Main Event over which RedBird has an unexercised name option.
The Transaction follows a strategic review undertaken by Ardent Leisure and RedBird in relation to the future possession of Main Event. The strategic review resulted in a number of offers being received and the Ardent Leisure Board considers the Transaction to be within the best pursuits of Ardent Leisure shareholders.
Following the sale of its stake within the Main Event business, Ardent Leisure will become solely focused on its Theme Parks business, have no debt and can have a strong money place to support the ongoing restoration of the business, fund continued funding in new main rides/attractions, pursue alternatives for unlocking worth within the parks’ surplus land and speed up growth on this business.
Comments from Dr. Gary Weiss, Ardent Leisure Chairman said, “The Transaction displays the numerous worth creation that has been achieved by Ardent Leisure and the Main Event administration team, particularly over the previous 4 years following the overhaul of the Ardent Board in September 2017 and the appointment of Chris Morris as Chief Executive Officer of Main Event in March 2018.
During this period, Main Event has expanded its centre footprint by over 30% and greater than doubled EBITDA. Following the funding by RedBird Capital Partners in June 2020, Main Event was able to efficiently navigate the difficult interval of the COVID 19 pandemic and reestablish operations effectively, producing record revenues over the final twelve months.
Having regard to the valuation mirrored by the Transaction and its phrases and conditions, the Board believes that this Transaction with Dave & Buster’s is within the best pursuits of Ardent Leisure shareholders.
Furthermore, if the Transaction completes, Ardent Leisure shareholders will obtain a significant distribution of money and retain continued possession in a number one theme parks operator with a strong balance sheet and extremely skilled administration team that’s poised to profit from the numerous investments made within the enterprise and the reopening of Australia’s economy and its worldwide borders.”
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