Britain’s biggest tenpin bowling operator, the Hollywood Bowl Group, formerly known as The Original Bowling Company Original Bowling Company, has this morning unveiled plans for a stock market flotation, which would valuing the company at c£280m.
The company is set to use the funds from the listing, with admission expected to occur next month, to aid further expansion. The IPO will see its private equity owner Electra sell down about half of its 85% stake
The full listing, on which it is being advised by Investec, will allow the management team, led by Steve Burns, chief executive, to cash in some chips, although they are retaining more than half their combined 15%.
Electra bought the business almost two years ago for £91m and last year added the rival Bowlplex chain for c£30m
The company currently operates 54 bowling centres, mostly under the Hollywood Bowl and AMF brands.
It is currently opening new centres at the rate of about two a year, costing up to £2.2m each, with the next two to open to be in Derby and Southampton.
Last year, the group’s 54 centres helped deliver a 9% increase in revenues to £86m while earnings increased 41% to £20.6m.
Stephen Burns, chief executive of Hollywood Bowl Group, said: “We are very excited about the next stage in the development of Hollywood Bowl Group, and believe we have all the attributes to succeed as a listed business. We have achieved a huge amount in the past few years, revolutionising the customer experience and transforming the business through investment and acquisition. We provide an outstanding family entertainment experience and we are looking forward to taking that experience to more and more people across the UK. The IPO will allow us to continue to build the momentum of the business, providing a solid platform for further growth.”
Peter Boddy, non-executive chairman of Hollywood Bowl Group, said: “I have been enormously impressed by the progress of Hollywood Bowl Group, driven by a committed and dedicated management team. However, there is a great deal more to come, and I firmly believe Hollywood Bowl Group has a very promising future. As a listed company, we will have greater flexibility to capitalise on the many growth opportunities identified and generate long term value for all shareholders.”