Brunswick Corp. agreed to sell its retail bowling business to Bowlmor AMF for $270 million.
The proposed transaction encompasses 85centers in the United States and Canada.
In connection with its decision to sell its bowling centers, Brunswick also announced its intention to divest its bowling products business. Brunswick is targeting to complete that sales process by the end of 2014.
Brunswick will retain its legacy and namesake billiards business.
Bowlmor had made an unsolicited offer to purchase the center
“Brunswick retail bowling has long been a solid contributor to our company, and last year had approximately $187 million in sales. After careful consideration, however, we concluded that this transaction is in the best interests of our shareholders and the retail bowling business,” explained Brunswick chairman and CEO Dustan E. McCoy.
“The bowling industry has been evolving as center counts decline and the customer mix shifts from predominately league bowling to casual bowlers seeking an entertainment-oriented experience. For Brunswick to drive growth in this business, it would take continual development of new entertainment concepts and significant additional investment to implement these new concepts at new properties or to convert existing centers,” McCoy added.
“Conversely, Bowlmor AMF’s primary strategic objective is to invest in and grow its retail bowling business, which includes proven entertainment concepts in certain of its centers. With the addition of the Brunswick locations, Bowlmor AMF will increase its center count to 343 in North America, and, it will add some of the most dedicated and talented people in retail bowling,” McCoy said.
"Following the transformative Bowlmor and AMF merger last year, which established us as the world's largest bowling center operator, the acquisition of Brunswick's bowling centers will further expand our geographic footprint," said Tom Shannon, chairman, CEO and president of Bowlmor AMF. "This acquisition will provide us with a strategic foothold in a number of additional markets while enabling us to further scale our operations and mission by leveraging our strong marketing, employee training and operational infrastructure."
The transaction is being financed with a sale-leaseback on a significant pool of real estate and a term loan, and is expected to close in about 90 days.