Electra benefits from Hollywood Bowl IPO

Electra Partners has announced the successful initial public offering (“IPO”) of its portfolio company Hollywood Bowl Group, the UK’s largest ten-pin bowling operator. Upon admission of its shares to the Main Market of the London Stock Exchange on 21 September 2016, Hollywood Bowl will have a market capitalisation of GBP240 million.

Based on the offer price, Electra Private Equity’s equity and debt investments in Hollywood Bowl have a value of GBP217million, an uplift of GBP62 million on the valuation at 31 March 2016 and equivalent to an increase in Electra’s NAV of 126 pence per share. On admission, Electra is expected to receive cash proceeds of GBP153 million from the sale of its equity investment as well as the repayment of GBP22 million of debt instruments issued by Hollywood Bowl. In addition, Electra will hold approximately 18% of the issued ordinary share capital of Hollywood Bowl with a valuation at the offer price of GBP42 million; these shares are subject to a six-month lock-up.  The total equity return for Electra is 3.1x in cash plus a further 0.8x in shares, totalling 3.9x and an IRR of over 90%.

Hollywood Bowl Group, formerly known as The Original Bowling Company, is the UK’s largest ten-pin bowling operator, with a portfolio of 54 centres operating across the UK under the Hollywood Bowl, AMF and Bowlplex brands. The group specialises in operating large, high quality bowling centres, designed to offer a complete family entertainment experience with each centre offering at least 16 bowling lanes, on-site dining, licensed bars, and state-of-the-art family games arcades.

Bill Priestley, Chief Investment Partner at Electra Partners, said: “This investment is a great example of Electra Partners’ investment strategy in action. When we first invested two years ago our plan was to accelerate the company’s growth and, together with Steve Burns and his team, this is exactly what we have done: bringing forward and expanding the company’s organic growth investment programme, developing the new site pipeline, and leading the acquisition of Bowlplex. Altogether these actions have more than doubled the size of the business while transforming it into the UK market leader with multiple levers for future growth.”

Steve Burns, CEO of Hollywood Bowl Group, said: “Electra Partners have been a fantastic investor for Hollywood Bowl, with their support we have achieved a huge amount over the past few years, continuing to transform the business through investment and acquisition, and providing outstanding family entertainment to millions of customers every year. Keeping the customer experience at the heart of everything we do, we have exciting plans in place to grow the business further in the years ahead.”

ELTA : Electra benefits from Hollywood Bowl IPO