• M&A Leisure deal flow bulletin

    October edition


M&A Leisure deal flow bulletin - October edition

31 October 2017

Welcome to the October edition of our bulletin. – the BDO M&A Leisure team's monthly overview of the latest M&A activity we've seen in the leisure space.

We are delighted to announce that BDO advised Duke Street, the mid-market private equity group, on the acquisition of TeamSport, the UK's largest indoor go-karting operator. TeamSport, led by managing director Dominic Gaynor, operates 23 tracks across the UK, including five in London, and expects to accelerate its rate of growth with Duke Street's backing.

Travel deal flow

  • Private investment firm Starwood Capital has invested $250m in hotel chain Yotel in exchange for a 30% stake. Yotel plans to expand internationally, growing by 60 properties over the next five years
  • Nick Weber's Henderson Park has acquired UK mega hotels Hilton London Metropole and Hilton Birmingham Metropole from Tonstate property group. The deal is thought to be worth £500m
  • Accorhotels has agreed to acquire Gekko, the specialist in hotel distribution solutions for business travellers, in a deal that values Gekko at €100m. The platform reaches more than 500,000 hotels globally and serves more than 300 corporate customers and 14,000 travel agencies through its subsidiaries
  • Wyndham hotel group has added AmericInn to its collection of 1,500 midscale hotel brands. The 200 mostly franchised hotels were acquired for a reported $170m
  • Travel Weekly described Monarch as 'the largest UK airline ever to enter administration and leaves 110,000 people abroad and 300,000 forward bookings that will be cancelled' after the collapse of the airline in early October.

Restaurants and Bars deal flow

  • Phoenix backed Busaba Eathai has undergone a financial restructuring. After it provided a private debt deal in 2016, the New York debt fund Muzinich has secured a debt for equity swap and a significant minority stake in the process
  • Piper backed Be At One aims to grow from 33 to 70 sites over the next 5 years after completing a £20m refinancing deal with Santander
  • Stonegate's £102m cash takeover bid for Revolution has been rejected by 54% of shareholders. Board members are said to be re-considering a counter offer from Deltic
  • US restaurant chain Ruby Tuesday will be taken private by investment firm NRD Capital who agreed to pay $2.40 per share or $146m. The deal is expected to complete in early 2018
  • Daytona JV Limited, operator of the Domino's master franchise in Germany, is to acquire 170 site chain Hallo Pizza, the largest independent pizza chain in Germany, for a reported €32 million
  • US based multi-brand, restaurant franchising company Fat Brands Inc. has completed a $24m listing on Wall Street at a $120m valuation or $12 per share.

Pubs and Brewers

  • Bar, club and restaurant operator Glendola Leisure has acquired Handmade Pubs' 2 sites for an undisclosed amount. The group is on the lookout for other opportunities to increase its presence in the UK
  • Anheuser-Busch InBev has completed a deal that buys the drinks giant a majority holding in Coca-Cola Beverages Africa for $3.15bn
  • Coca-Cola Amatil has acquired a taste for beer in the form of Australian-based Feral Brewing Company, purchased for an undisclosed sum
  • City Pub Co has acquired the Aragon House pub in Parsons Green from Fulham Royal British Legion Club for £7.75m. The acquisition takes the group a step closer to its target of operating 35 pubs by the end of the year
  • Admiral Taverns and the G1 Group will acquire a group of 29 pubs from Heineken following a Competition and Market Authorities investigation into Heineken's acquisition of the Punch A portfolio.

Other leisure deal flow

  • Waterworld Leisure has acquired Adventure Island Mini-Golf for £20million and now plans a further significant expansion of 20 sites within 5 years
  • Consumer brand specialist Piper has invested £6m in boutique fitness brand Frame. With Piper's backing the 4 site business will look to expand across London and the UK
  • Alliance Entreprendre has announced the purchase of Spanish corporate gym operator The Corporate Gym & Wellbeing.

Please contact one of the M&A Leisure team if you would like to discuss any of the topics raised in more detail.

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