Shares of Dave & Buster tumble after Co. says it will buy competitor for $835 million
By Will Feuer
Shares of Dave & Buster’s Entertainment Inc. fell more than 8% in morning trading after the company announced it had agreed to buy family entertainment company Main Event for $835 million.
Once the all-cash deal closes, which is expected later this year, Main Event general manager Chris Morris will take over as CEO of Dave & Buster’s, the companies said.
Investors punished Dave & Buster’s for the deal, sending the stock down more than 8% to $42.58 per share by late morning, outpacing a market selloff. The stock is up nearly 11% so far this year, including Wednesday’s losses. He gained almost 28% last year.
Dave & Buster’s interim president and CEO, Kevin Sheehan, touted the acquisition as a way for the company to expand its reach, primarily from young adults, to families with young children. The company had also been looking for a new chief executive since its former CEO Brian Jenkins retired last year.
Mr. Morris, the new CEO, has been CEO of Main Event since 2018. During that time, he has grown the company’s footprint by more than 30% and more than doubled earnings before interest, taxes, depreciation and depreciation, Main Event said. He previously served as president of California Pizza Kitchen and chief financial officer of On The Border.
Write to Will Feuer at [email protected]