16th Feb 2023 10:16
(Alliance News) - Hollywood Bowl Group PLC on Thursday said it has brought three Canadian-based bowling businesses for CAD12 million, about GBP7.5 million.
The Hertfordshire, England-based ten-pin bowling operator said it will buy HLD Investments Inc, Mountain View Bowl Inc and Wong & Lewis Investments Inc in cash. HLD Investments operates as YYC Bowling & Entertainment, whilst Wong & Lewis operates as Let's Bowl.
The three entertainment centres operate in the Calgary market, each with ten-pin bowling lanes, dining, drinks and amusement offers.
Hollywood Bowl said the acquisitions support its growth strategy in the "fragmented" Canadian market.
In 2022, the company first announced a foray into the Canadian market with the acquisition of Teaquinn Holdings Inc for GBP10.6 million.
Teaquinn consists of Splitsville, an operator of ten-pin bowling centres, and Striker Bowling Solutions, a business-to-business supplier and installer of bowling equipment.
In the twelve months to September 30, the three bowling centres generated CAD7.1 million in revenue and CAD2.8 million of earnings before interest, tax, depreciation and amortisation.
Hollywood Bowl noted that the business has seen "strong" trading since Covid-19 restrictions were relaxed in early March 2022, and it is currently outperforming its financial year 2019, pre-pandemic.
The company expects the acquisitions to be earnings enhancing in the financial year ending September 30, 2023.
Chief Executive Stephen Burns said: "They mark an important step towards our planned expansion of the Splitsville brand in Canada, where there is significant demand for affordable, family-friendly leisure experiences. These are our first centres in the important Alberta market, and together with Pat Haggerty, our Canadian president & managing director, and his team, we are looking forward to applying our knowledge and experience to these centres."
Shares in Hollywood Bowl were up 2.6% to 243.66 pence each in London on Thursday.
By Sophie Rose, Alliance News reporter
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