US private equity firm Oak Hill Capital Partners has agreed to acquire Dave & Buster's, a North American operator of family entertainment and food venues, for $570m, taking ownership from Wellspring Capital Management.
The deal is a further sign that the secondary buy-out market, where private equity funds sell their investments on to other funds, is returning. This week, Apax Partners bought IT security firm from TA Associates, and UK discount retailer Poundland changed hands from Advent International to Warburg Pincus.
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s operates restaurant and entertainment venues that provide customers the opportunity to “Eat, Drink & Play” in one location. The outlets offer dining and amusements, including arcade video games.
In February, Oak Hill agreed to sell New York-based drugstore chain Duane Reade to strategic buyer Walgreens for $1.1bn, including the assumption of debt. The sale includes 257 Duane Reade stores located in the New York City metropolitan area, as well as the corporate office and two distribution centres.
Oak Hill manages more than $8.4bn.
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