RICHMOND,
VIRGINIA — AMF Bowling Worldwide, Inc. (“AMF”)
and Code Hennessy & Simmons LLC (“CHS”), a
Chicago-based private equity firm, announced today that they
have completed the merger transaction in which AMF has been
acquired by an affiliate of CHS.
Fred Hipp has been named President and Chief
Executive Officer of AMF Bowling Worldwide, Inc. He joins
AMF with thirty years in the hospitality industry, most recently
as President and CEO of California Pizza Kitchen.
“AMF is a company with enormous potential
that has been hindered by its financial structure over the
past several years,” said Hipp. “We now have the
resources and long-term commitment to begin investing in people
and the strategies that will positively affect our customers’
perception of the AMF bowling experience.”
The merger transaction is valued at approximately
$670 million, of which $250 million will be financed through
the sale of certain real estate assets under a sale-leaseback
facility. Debt financing consists of $135 million in term
loans under a new senior secured credit facility, as well
as a recently completed offering of $150 million in senior
subordinated notes. Finally, a $135 million equity investment
was made by Kingpin Holdings, the acquiring affiliate of CHS.
Under the terms of the merger agreement,
AMF shareholders will receive $25.00 in cash for each common
share.
AMF Bowling Worldwide Inc. is the world's
largest owner and operator of bowling centers and is also
a leader in the manufacturing and marketing of bowling and
billiards products. Additional information about AMF is available
on the Internet at www.amf.com. |