Dave & Buster’s stock lifts on buyout deal
DALLAS – Shares of Dave & Buster’s Inc. rose Friday after it said it has agreed to be taken private for about $245 million by an investment firm.Wellspring Capital Management LLC offered $18.05 a share for Dave & Buster’s, which has 13.7 million shares outstanding. Including the assumption of debt, the value of the deal was $375 million, Dave & Buster’s said late Thursday.Shares of Dave & Buster’s jumped $2.28, or 15 percent, to $17.49 in afternoon trading Friday on the New York Stock Exchange. On a 52-week basis, the stock hit a high of $20.74 on Feb. 22 and a low of $12.42 on Oct. 28.Volume was heavy, and the day’s strongest level was $17.89.The Dallas-based company has 46 restaurant and entertainment complexes.Dave & Buster’s said the deal has already been approved by its board, and it expects the transaction to close in the second quarter of 2006.Also Thursday, Dave & Buster’s posted a loss of $3.2 million, or 23 cents a share, for the third quarter ended Oct. 30. That compares with a loss of $88,000, or less than a penny a share, a year earlier.The current quarter included $1.5 million in pre-opening expenses and $500,000 in previously disclosed expenses related to the closing of the Mall of America Jillian’s location.Despite hurricane-related costs cutting third-quarter revenue by $300,000, the latest quarterly revenue grew to $105.6 million from $84 million last year.Third-quarter same-store sales increased 3.2 percent.