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- Ardent Leisure (ALG) buys three family entertainment centres in Denver, Colorado through their US extension, Main Event Entertainment
- The acquisition gives Main Event immediate penetration into one of Ardent’s target trade areas in the US
- The total contractual purchase price is approximately US$26 million (A$35 million) which was funded by existing available liquidity at Main Event
- The centres will be integrated within the Main Event brand over the next few months to maximise synergistic growth opportunities
- Share prices are down by 2.24 per cent at $1.53 per share
Ardent Leisure (ALG) has completed the asset acquisition of three family entertainment centres in Denver, Colorado through their US extension, Main Event Entertainment.
The acquisition gives Main Event immediate penetration into one of Ardent’s target trade areas in the US.
The total contractual purchase price is approximately US$26 million (A$35 million) and was funding with existing available liquidity at Main Event.
The combined unaudited LTM revenue for the three centres as of December 2021 was approximately US$24 million (A$33 million).
The normalised, pro forma 4-wall earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin is expected to be approximately 25 per cent which includes cash rent.
The acquired Summit centres will offer a similar variety of high-quality entertainment and food & beverage offerings as Main Event and are led by strong operational teams.
The centres are expected to be integrated within the Main Event brand over the coming months to maximise synergistic growth opportunities.
This follows after Ardent had announced its FY22 half year results which showed increasing revenues and a significant fall in net losses.
It announced a net loss of $36.8 million, a 55 per cent reduction from its $82.3 million at the same time last year backed by a 993 per cent improvement on EBITDA to $43.6 million.
The improved position was driven by strong performance of Main Event, which yielded a 109.1 per cent increase in revenue to $136.2 million (US$98.4 million), boosting the group’s operating revenue to $275.5 million, just over 100 per cent increase.
Despite a sharp growth in increasing revenue, share prices were down by 2.24 per cent at $1.53 per share as of 1:46 pm AEDT.
