Family Entertainment Group Obtains Strategic Investment

BARRINGTON, IL -- Family Entertainment Group said it has received a strategic investment from TZP Group, an eight-year-old private-equity firm that manages more than $600 million. Financial terms were not disclosed.

Founded in 2003, FEG specializes in the design, development and management of amusement machine arcades. Its services range from game brokerage and facility design to outsourced amusement property management. It also operates amusement centers for blue-chip customers in more than a dozen entertainment and hospitality channels, including indoor waterparks, amusement parks, bowling centers, movie theaters, hotels and restaurants.

"This recapitalization expands our ability to invest in the finest games and special attractions, enhance our technology and systems, and attract the best people, all to provide the highest level of service to our facility partners and their customers," said FEG president and chief executive George Smith.

Smith will continue to lead FEG's current management team, which retains "significant" ownership interest in the business.

Rodney Eshelman, a partner at New York City-based TZP Group, said that FEG's depth of services for the family entertainment center industry is a compelling value proposition. The recapitalized FEG will focus on expanding services, developing new markets and pursuing acquisitions.