Dave & Buster’s announced on Wednesday that it has finalized its $835 million deal to acquire the Main Event restaurant and gaming chain.
As announced in April, Main Event CEO Chris Morris is now Dave & Buster’s Managing Director and a member of its Board of Directors. Chairman of the board, Kevin Sheehan, had served as the entertainment brand’s interim CEO since September, following the retirement announcement of Brian Jenkins.
Sheehan, in a statement, said Dave & Buster’s was excited to “begin to capitalize on the tremendous opportunity created by this combination.”
“These two brands complement each other perfectly, and their union places our company in an unprecedented strategic position for accelerated and profitable growth under the leadership of Chris Morris,” said Sheehan.
Dave & Buster’s, based in Coppell, Texas, has been in business for 40 years and has 147 dining and gaming centers in North America. The Dallas-based Main Event, which debuted in 1998, has 50 locations in 17 states.
The two concepts are similar in their focus on food, drink, and games. But their target demographics differ: Main Event primarily seeks to appeal to families with young children while Dave & Buster’s caters to young adults.
Dave & Buster’s said it expects to save about $20 million over the next two years from store support center consolidation and supply chain efficiencies following the acquisition.
The purchase price represents a valuation multiple of approximately nine times Main Event 2021 Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization.
“We have created a combination of brands and people that will enhance our relationships with our customers and enable us to provide them with even better experiences,” Morris said in a statement. “This is truly a transformational time for our business, and I look forward to embarking on this journey.”
Dave & Buster’s earlier this month reported a record first quarter, with same-store sales up 10.9% from 2019. The chain’s special events business, however, remains in down 34.6% from the pre-pandemic period, although executives said it appears to be on a turnaround.
Dave & Buster’s revenue increased 24.1% to $451.1 million from the same period in 2019 for the quarter ended May 1.
“We’re excited about the opportunity to be more prescriptive and surgical in how we market to adults and leverage Main Event’s ability for us to capitalize on family,” the director of the company said. holding Margo Manning to analysts earlier this month.
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