One of the biggest acquisitions in recent years in the amusements and FECs sector has been concluded, with the purchase of Ardent Leisure’s Bowling and Entertainment Division for A$160m (€103.5m) by The Entertainment and Education Group (TEEG).
It was only in mid-November that the Steinberg family in Australia had sold off half of its Timezone FECs operation to private equity company Quadrant, with the declared intention of rapid expansion throughout Asia.
They formed TEEG with that intention and the deal with Ardent is the first acquisition by the new organisation. It brings together Timezone, AMF, Kingpin and Playtime to form one of the world’s largest family entertainment centre groups. TEEG operates across six countries with 250 locations.
In a media release, the group said that its strategy was to “invest significant growth capital across Australia and Asia to capitalise on the rapid growth seen in the entertainment and early education sectors that are benefiting from the emerging middle markets and growing consumer spending habits.”
The plan is to focus on the international expansion of Kingpin and Playtime across south-east Asia.
Chris Hadley, chairman of TEEG and Quadrant, said: “B&E has built a market leading position in Australia and New Zealand and the combination with Timezone will position TEEG as one of the world’s largest FEC groups, with leading operations in Australasia and an unmatched offering and geographic footprint.”
Scott Blume, managing director of TEEG, said: “The acquisition complements our existing Timezone business and gives us access to new brands and leisure experiences for our customers across Australasia. The FEC sector continues to experience positive tailwinds and the business continues to deliver double digit growth in revenues and EBITDA as we continue to invest to deliver on organic growth, new sites and opportunistic acquisitions.”
