Bowling Center Operator Bowlero Agrees to $2.6 Billion SPAC Merger

The world’s largest ten-pin bowling center operator Bowlero Corp announced it is going public through a merger with a special acquisition purpose company (SPAC) Isos Acquisition Corporation (NYSE: ISOS), in a business deal valued at approximately $2.6 billion.

After the transaction is completed, Bowlero’s common shares and warrants will debut on the New York Stock Exchange (NYSE) under the ticker symbols “BOWL” and “BOWL WS”, respectively.

“As the global leisure industry continues its strong rebound from last year, the strength of our brand and business model leave us extremely well-positioned to benefit. Since pandemic capacity restrictions have started to lift, location revenue has sharply rebounded to greater than pre-pandemic levels despite continued restrictions in certain locations,” said Brett Parker, Bowlero’s President and CFO.

“We anticipate that EBITDA will grow at more than an 11% (CAGR) through 2023 from pre-pandemic levels, with normalized EBITDA margins north of 30% as we further grow the business and execute our plan.”

The deal includes a fully-committed private investment in public equity (PIPE) of $450 million, including $345 million in cash and $105 million of Atairos’ existing equity in Bowlero, secured by investors and funds managed by affiliates of Apollo Global Management Inc., Brigade Capital Management, Soros Fund Management LLC, The Donerail Group LP, and Wells Fargo Asset Management.

The transaction, which is expected to close in October 2021, will provide capital to repurchase a part of its existing equity and leave the bowling center operator with enough cash to fund growth.

“We are excited about the incredible business that Tom and Brett have expertly built. They have created a branded community poised for long-term growth driven by global demand for premium live experiences augmented by engagement opportunities across leisure, media, and gaming. We view this business combination as highly strategic with committed capital that gives Bowlero even more financial flexibility to execute on organic and inorganic growth plans,” commented George Barrios and Michelle Wilson, co-CEOs of Isos.

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