Quadrant's family entertainment platform makes debut acquisition
Australia’s Quadrant Private Equity has purchased amusement arcade operator Timezone Group as the first part of a buy-and-build strategy in the family and children’s entertainment market.
The private equity firm – which is said to be targeting A$1 billion ($757 million) for its ninth fund, which is its sixth as a fully independent entity – has formed a holding company called The Entertainment and Education Group (TEEG) to make acquisitions in Australia and across Asia.
TEEG has invested in Timezone alongside the Steinberg family, which founded the business in 1978, and management. The size of the deal was not disclosed. Having management roll over equity into the acquisition vehicle is also a characteristic of Quadrant’s other recent platform plays in the fitness center and experiential tourism markets.
The first Timezone family entertainment center opened in Perth and the business has since grown to more than 200 locations. In 1995, it established a foothold outside of Australia and now has a presence in India, Indonesia, New Zealand, the Philippines, Singapore, and Vietnam. Games range from classic arcade offerings to bumper cars to laser tag.
“Quadrant's investment in Timezone reflects the continued interest of private equity to capitalize on growth in the entertainment and education sectors,” said Vijay Cugati, lead partner on the deal for law firm Allens, which advised the Steinberg family, in a statement.
Quadrant closed its previous fund as recently as August 2017, having raised A$980 million in about one month. The GP has agreed to A$1 billion worth of exits in the past six months – selling cancer care business Icon Group and Real Pet Food to consortiums that are interested in Asia expansion – as well as offloading drinking water appliances maker Zip Industries to Culligan International.
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