Chicago-based middle market buyout firm Code Hennessy & Simmons, through its portfolio company Kingpin Holdings, has completed the going-private purchase of AMF Bowling Worldwide for $670 million (€537 million).
Of the total amount, $135 million will be in equity, $250 million will be financed through the sale of certain real estate assets, $150 million comes from the completed offering of senior subordinated notes and the remaining $135 million is debt, according to the statement. Current AMF shareholders will receive $25 in cash for each common share.
AMF is the world’s largest owner and operator of bowling centers and is also manufactures bowling and billiards products. According to many news reports, while the company does have an established brand globally, AMF has been hit with debt and operating expenses and has had a hard time making money as of late.
Founded in 1988, Code Hennesy & Simmons manages approximately $1.5 billion in capital in four funds. Last month, the firm announced an agreement to buy key specialist The Hillman Companies from Allied Capital for approximately $510 million.