Acquisition of three bowling centres in Canada

RNS Number : 0742Q

Hollywood Bowl Group plc

16 February 2023

 

16 February 2023

Hollywood Bowl Group plc

("Hollywood Bowl" or the "Group")

Acquisition of three bowling centres in Calgary, Canada

Strategic purchase expands the Group's Canadian growth platform to nine centres

·     Hollywood Bowl is pleased to announce the acquisition of  HLD Investments Inc. (operating as YYC Bowling & Entertainment), Mountain View Bowl Inc and Wong and Lewis Investments Inc. (operating as Let's Bowl) , three Canadian-based bowling businesses, for a combined total consideration of CAD 12 million (approximately  7.5 million).

Acquisition highlights

o  The  three entertainment centres (YYC Bowling & Entertainment, Mountain View Bowl and Let's Bowl), operate in the Calgary market each with ten-pin bowling lanes, dining, drinks and amusement offers.

o  The acquisition supports the Group's growth strategy in the fragmented Canadian market and will build on the strong progress already being made by Splitsville, the Group's first acquisition in Canada last year.

o  On a proforma basis, for the 12 months to 30 September 2022, these centres generated CAD 7.1 million revenue and CAD 2.8 million EBITDA on a pre-IFRS 16 basis, equating to a purchase price of 4.3x pre-IFRS 16 EBITDA.

o  The businesses have seen strong trading since Covid-19 restrictions were relaxed in early March 2022 and is currently outperforming when compared to FY2019.

o  The consideration of CAD 12 million (approximately £ 7.5 million) will be funded from the Group's existing cash resources and the acquisition will be earnings enhancing for the financial year ending 30 September 2023.

o  The Group has identified a pipeline of acquisitions as well as new site opportunities in the Canadian market - with returns in line with Hollywood Bowl's financial investment criteria. 

Stephen Burns, Chief Executive of Hollywood Bowl Group, commented:

"We are delighted to have made these acquisitions. They mark an important step towards our planned expansion of the Splitsville brand in Canada, where there is significant demand for affordable, family-friendly leisure experiences. These are our first centres in the important Alberta market, and together with Pat Haggerty, our Canadian President and Managing Director, and his team, we are looking forward to applying our knowledge and experience to these centres. We are focused on enhancing the customer experience as we invest in and grow their businesses over the coming years."

-Ends-

Enquiries:	Via Tulchan Communications
Hollywood Bowl Group PLC
Stephen Burns, Chief Executive Officer
Laurence Keen, Chief Financial Officer
Mat Hart, Chief Marketing and Technology Officer
Tulchan Communications
Will Palfreyman	[e-mail]
James Macey White	[phone]
Laura Marshall

Notes to Editors:

Hollywood Bowl Group plc

Hollywood Bowl Group is one of the largest operators of bowling centres in the World, and the UK's largest ten-pin bowling operator, with a high-quality portfolio of 69 centres across the UK under the Hollywood Bowl and Puttstars (mini-golf) brands. The Group specialises in operating large, high quality bowling centres, predominantly located in out-of-town multi-use leisure parks (typically co-located with cinema and casual dining sites) and large retail parks. The centres are designed to offer a complete family entertainment experience with each centre offering bowling lanes or mini-golf courses alongside on-site dining, licensed bars, and state-of-the-art family games arcades.

In May 2022 the Group acquired Teaquinn, operator of Splitsville and Striker Bowling Solutions, which, following this acquisition, operates nine large entertainment centres in Canada, each with ten-pin bowling lanes, dining, bar, and amusement offers.

 

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