Melbourne entrepreneur, Michael Schreiber, is offloading his entertainment group, Funlab Pty Ltd, the company behind the Strike Bowling chain and indoor trampoline parks, Sky Zone in a deal that may top $80m amid.
Listed rival, Ardent Leisure, and a handful of private equity firms are expected to pursue the business, which generates $50m in annual revenue or the 2017 financial year, while its gross profit is close to $14m.
Schreiber established Funlab in 2001, and after fielding approaches from prospective partners and suitors, opted to establish a formal sales process.
Lion Capital Advisory and HWL Ebsworth have been appointed as advisors with first bids for the business, which employs over 500 people, due in September. Schreiber is hoping to conclude a deal by the end of December.
Funlab operates three brands and has expanded to 12 Strike locations, 4 Sky Zone locations and 15 Exitus rooms, or themed escape rooms that challenge participants’ problem-solving skills.
The company is aiming to double its bottom line earnings by snapping up more locations and launching new offerings.
Its latest strategy on this front includes Holey Moley, a themed mini golf enterprise that will launch this year.
AAD Price at posting:
$2.13 Sentiment: Buy Disclosure: Held
