‘BOWLING LOUNGE’ PIONEER ACQUIRED BY BOWLERO CORP.

Bowlero Corp. has entered into a definitive agreement to acquire substantially all the assets of Lucky Strike Entertainment LLC, an operator of 14 upscale bowling locations across nine states.

Bowlero will acquire the Lucky Strike business in an all-cash transaction valued at approximately $90 million. The transaction is expected to close in the first half of Bowlero’s fiscal year 2024 and is subject to customary closing conditions.

“Lucky Strike is a premier experiential entertainment brand, and we could not be more excited to add its world-class portfolio to ours,” said Bowlero Corp. founder and CEO Thomas Shannon. ”Lucky Strike’s impressive family of locations in flagship cities across the country naturally complements our national footprint, immediately launching our presence in major cities like Boston, Chicago and Denver.”

Brett Parker, president of Bowlero Corp., added, “The 14 centers set to be acquired in this transaction have a fantastic financial profile. With annual average unit volumes of over $6 million, these assets offer a tremendous opportunity for the Bowlero team to apply QMS-driven optimization and grow profitability off of an already-strong base. Lucky Strike posted $87 million of revenue, center-level EBITDAR margin of 36%, $18 million of center-level EBITDA, and $11 million of consolidated EBITDA in the trailing 12 months ended March 2023.”

Upon completion of the transaction, Bowlero Corp. will have increased its national footprint to 343 centers in 35 states. Unrelated to the Lucky Strike acquisition, Bowlero completed five center transformations in May (Aurora, Colo.; Tamarac, Fla.; Port St. Lucie, Fla.; Bartlett, Tenn.; and Wichita, Kan.).