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Wellspring Capital to Sell Dave & Buster’s to Oak Hill Capital Partners for $570 Million
May 3, 2010
DALLAS, TEXAS--Wellspring Capital Management LLC (“Wellspring”) today announced that it has entered into a definitive agreement to sell its portfolio company Dave & Buster’s, Inc. (“Dave & Buster’s”) to Oak Hill Capital Partners (“Oak Hill Capital”) in a transaction valued at approximately $570 million.
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier owner and operator of high-volume restaurant/entertainment venues that provide customers with the unique opportunity to “Eat, Drink & Play®” all in one location. Dave & Buster’s offers a full menu of high quality food and beverage items combined with an extensive assortment of entertainment attractions, including state-of-the-art video games, interactive simulators and other games of skill. Dave & Buster’s currently has 56 stores in 24 states and Canada.
Greg S. Feldman, Managing Partner of Wellspring, said, "We are very pleased by the growth and financial performance of Dave & Buster’s since we acquired the company in 2006. This has been a very successful investment for our firm and the company is well-positioned for future growth, both domestically and internationally. We thank Steve King, his management team and all Dave & Buster’s employees for their great work and we wish them continued success."
Steve King, CEO of Dave & Buster’s, said, “We have thoroughly enjoyed our partnership with Wellspring. Since acquiring Dave & Buster’s in 2006, Wellspring has brought considerable strategic value to our business, resulting in several years of record growth and significant increases in profitability. We thank the firm for its support and for positioning Dave & Buster’s for continued success.”
Completion of the transaction, which is subject to regulatory approvals and customary closing conditions, is expected in the second quarter of 2010.
Jefferies & Company, Inc. acted as sole financial advisor to Dave & Buster’s. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to Wellspring Capital.
About Dave & Buster’s, Inc.
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier national owner and operator of high-volume venues that offer interactive entertainment options for adults and families, such as skill/sports-oriented redemption games and technologically advanced video and simulation games, combined with a full menu of high quality food and beverages. Dave & Buster’s currently has 56 stores in 24 states and Canada. For additional information on Dave & Buster’s, please visit www.daveandbusters.com or call (214) 357-9588.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $2 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.
Media Contacts:
For Wellspring Capital Management
Kekst and Company
Mark Semer / Micheline Tang
212.521.4800
micheline-tang@kekst.com