Malcolm and Adam Steinberg have sold half of their Timezone family entertainment centres business to Quadrant, a major Australian private equity company, in a deal that will finance rapid expansion of their amusement centres throughout Asia.
The Steinberg family, together with Quadrant, has founded the Entertainment and Education Group to brand the new venture.
Malcolm Steinberg, who founded the Australian Timezone operation 1978, today oversees the operation of 200 centres in Australia and across a number of south-east Asian countries. They take the form of Timezone FECs and Timezone Play and Learn stores.
The current Timezone managing director Scott Blume will head a new management team for the TEEG operation. He will be joined by Timezone group CEO Sonaal Chopra and both Malcolm and son Adam will remain with TEEG as members of the board, together with Chris Hadley and Jonathon Pearce from Quadrant.
At the IAAPA trade show that opened its doors in Orlando, Florida, yesterday, Malcolm Steinberg told InterGame: “We wanted to expand rapidly as there are so many opportunities in Asia and rather than raise finance we decided to sell off 50 per cent of the business to the investment group to fund that expansion.”
The official release from Timezone said that the strategy would be “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. Private consumption growth across south-east Asia is forecast to be over 30 per cent across the next five years and largely focussed on education, entertainment and leisure.”
Said Malcolm Steinberg in the release: “In the last 40 years our business has achieved great success and overseen re-invention and recreation of the brand as we continue to serve our eight million customers every year. We have a highly experienced management team in place led by managing director Scott Blume and CEO Sonaal Chopra.
"With Quadrant’s investment, we are excited to take on an experienced and credentialed investor who will help drive the business further and to greater heights.”
