Ten Entertainment Group (TEG) has reached an agreement with US private equity firm, Trive, to be purchased in a deal worth £287m.

Each TEG shareholder will be entitled to receive 412.5 pence in cash for each share they own.

UK-based TEG operates ten-pin bowling centres and is one of the UK’s largest listed leisure businesses. Since reopening after the COVID pandemic, TEG has achieved record results with a group adjusted profit before tax of £26.1m delivered in FY22.

The boards of directors of Trive’s Neon Buyer bidco vehicle and TEG intend that the acquisition will be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the 2006 Act.

TEG’s entire issued, and to be issued ordinary share capital, has been valued at approximately £287m on a fully diluted basis, and implies a multiple of approximately 7.3 times TEG’s group adjusted EBITDA after rental costs for the 12 months to July 2023.

Chair of TEG, Adam Bellamy, said that while TEG has “performed well” in the public markets in comparison with its peers, the acquisition provides its shareholders with the opportunity and certainty of an exit which “recognises the underlying value” in the business.

“The price offered by Bidco represents an attractive premium to TEG’s prevailing share price and accordingly the TEG Directors have no hesitation in recommending the offer to our shareholders,” Bellamy added.

Bidco suggested it can support TEG’s management team in “accelerating its long-term growth potential”, and that it can provide access to additional capital, expertise and resources needed to accelerate the longer-term potential of the business.

“We have been extremely impressed by the TEG management team and TEG’s ability to deliver a high-quality customer experience across its locations in the UK,” added partner of Trive, Shravan Thadani.

“Trive believes that private ownership will enable TEG to achieve its long-term growth potential through continued investment in organic initiatives and strategic acquisitions. To that end, and given our experience in the consumer and multi-unit retail sectors, we are excited to provide the operational resources, strategic support and capital required to enhance TEG’s next phase of growth.”

---