Dallas-based Dave & Buster's owns and operates 56 restaurant/entertainment venues across the nation, providing customers with opportunity to "Eat, Drink & Play®" all in one location. Founded in 1982, Dave & Buster's offers a full menu of food and beverage items combined with an assortment entertainment attractions including video games, interactive simulators and other games of skill.
Dave & Buster's currently has stores in 24 states and Canada. Oak Hill Capital is investing in partnership with Dave & Buster's current management team, led by CEO Steve King.
"We are very excited to partner with Oak Hill Capital given its extensive experience investing in consumer, retail and restaurant companies, as well as its long history of working successfully with management teams," King says. "We believe Oak Hill Capital will be a value-added partner that will help Dave & Buster's execute against its strategy of continuing to build its brand and expand its store base."Oak Hill Capital invests primarily in middle-market companies with strong fundamentals, favorable competitive positions, attractive growth prospects and superior management teams. The firm has with more than $8.4 billion of committed capital from a number of sources. It invests in six industry groups: basic industries; business and financial services; consumer, retail and distribution; healthcare; media and telecom; and technology.
"Dave & Buster's is a category defining concept that offers its customers a unique interactive entertainment and dining experience in a lively setting," according to Tyler Wolfram, a partner with Oak Hill Capital. "We believe there is a tremendous opportunity to grow the Dave & Buster's store base given its differentiated format, the strength of its brand and the meaningful number of untapped markets across North America and beyond."
According to Dave & Buster's fourth quarter and fiscal year 2009 statements--the most recent available--the company has faced a challenging operating environment over the past several months. Total revenues for 2009 decreased 2.4% to $520.8 million from $533.4 million for the comparable period last year. The reduction was comprised of a 7.8% decrease in comparable store sales, which was partially offset by a $27.8 million increase in revenues from non-comparable operations.
In the acquisition transaction, Jefferies & Co. Inc. acted as sole financial advisor to Dave & Buster's, and J.P. Morgan Securities Inc. acted as sole financial advisor to Oak Hill Capital. The transaction has fully committed financing from JPMorgan Chase Bank N.A., an affiliate of J.P. Morgan Securities, and Jefferies & Co. Both firms will act as joint lead arranger and bookrunner.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
