Issue Date: Vol. 54, No. 1, January 2014, Posted On: 12/17/2013
Dave & Buster's Explores IPO, Reports Say
by Staff Reporter
TAGS: coin-op news, arcade games, Dave & Buster's Inc., Dave & Buster's IPO, initial public offering, restaurant and arcade chain, amusement business, Goldman Sachs (GS.N), Jefferies, Oak Hill Capital Partners
DALLAS -- Dave & Buster's Inc. is once again exploring a sale or initial public offering that could value the restaurant and arcade chain at more than $1 billion, according to Reuters and other financial news sources.
The big box entertainment and dining operation, which scrapped plans to go public in October 2012, is working with Goldman Sachs and Jefferies on the potential sale, according to a Reuters report today.
Dave & Buster's, owned by private equity firm Oak Hill Capital Partners, was targeting earnings of nearly $130 million in fiscal 2013 before interest, taxes, depreciation and amortization, according to a company filing. The company could fetch eight to nine times that figure in a sale, according to unidentified sources in today's Reuter's story.
Dave & Buster's was founded in 1982 and owns some 65 stores in North America. The operation traded publicly between 1997 and 2006, when it was bought by a holding company operated by Wellspring Capital Partners and HBK Main Street Investors for $257 million. Oak Hill acquired Dave & Buster's for $570 million in May 2010.