Owners agree sale of ‘leisure-tainment’ business Funlab to private equity firm TPG Capital

January 15, 2021

Global private equity firm TPG Capital has agreed to acquire Australian bowling alleys and mini golf business Funlab from its current owners at a reported cost of $250 million.

Agreed before Christmas, the sale by Australian private equity group Next Capital, is expected to be complete in March, subject to approval by the Foreign Investment Review Board.

As part of the deal with TPG, Funlab Chief Executive, Michael Schreiber and his management team - who were advised on their options by Arnold Bloch Leibler - will roll a portion of their 25% stake into the new venture.

As reported by the Australian Financial Review, TPG is expected to partner with Schreiber to grow the business, which was heavily disrupted by the COVID-19 pandemic and associated lockdowns. Funlab operates leading brands including Strike bowling alleys, Holey Moley indoor golf venues, Sky Zone trampoline centres, B. Lucky & Sons game arcades and Juke's karaoke bars.

TPG’s approach is about capitalising on the long-term shift in consumer spending towards experiences and away from products, which has shopping malls and other landlords trying to anchor properties with large leisure and entertainment offerings.

TPG reckons is understood to be looking to expand Funlab’s sites in Australia and overseas, develop new concepts and better use data and analytics to tailor products to customers.

Next Capital’s sale comes a year after it had an agreement to sell the business to fellow Australia PE firm Archer Capital. However, the outbreak of COVID-19 and subsequent lockdowns led to that deal not proceeding.

Funlab has also licensed its Holey Moley brand for a mini-golf television game show in the USA.

Following the program’s success the ‘extreme mini golf’ series will launch on the Seven Network on 1st February.

Images: Strike bowling (top) and Funlab Chief Executive, Michael Schreiber (below).

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