Bowling center operator Ten Entertainment has agreed to be acquired by US private equity firm Tribe Capital for £287 million.
The ten-pin bowling company, which operates 52 facilities across the UK, told shareholders on Wednesday that its board was recommending a deal in which a US fund would buy the business for 412.5 pence per share in cash.
Dallas-based Trive has formed a new company called Neon Buyer to make the acquisition.
Ten Entertainment, which has 1,800 employees, said it had received assurances from the suitor that it would “continue to grow the business domestically and internationally”.
The Bedford-based leisure company listed on the London Stock Exchange in 2017 at a price of 165p per share.
Adam Bellamy, Chairman of Ten Entertainment, said:
“However, while TEG (Ten Entertainment Group) has performed well in the public markets relative to its peers, this acquisition provides an exit opportunity and certainty for all TEG shareholders, which will improve our business. I believe they recognize the underlying values.”
“The price offered by Neon Buyer represents an attractive premium to TEG’s prevailing share price and TEG directors therefore have no hesitation in recommending this offer to shareholders.”
Shravan Thadani, Partner at Trive, said: “Trive believes that through private ownership, he can help TEG achieve its long-term growth potential through continued investment in organic initiatives and strategic acquisitions.
“To that end, given our experience in the consumer and mixed retail sectors, we are excited to provide TEG with the operational resources, strategic support and capital it needs to power its next phase of growth.”
This follows recent deals such as the £534m acquisition of Hotel Chocolat by Mars and the £701m acquisition of Wagamama owner Restaurant Group by private equity firm Apollo. It is the latest U.S. takeover of a British company following the deal.