Lucky Strike Entertainment acquires real estate at 58 locations for $306 million

Lucky Strike Entertainment (NYSE: LUCK) acquired the real estate underlying 58 of its existing locations for $306 million, according to a company statement. The entertainment company previously leased these properties and will continue operating them after the transaction closes.

The acquisition eliminates $21 million in annual rent obligations for properties that generated approximately $80 million in annualized EBITDAR. The rent obligations were subject to 15% escalations every five years.

"By acquiring the real estate underlying these 58 existing locations, we maximize our flexibility to optimize our capital structure and location footprint," said Bobby Lavan, Chief Financial Officer. "The transaction is immediately accretive to earnings and cash flow and positions us to continue reinvesting in our most profitable venues and initiatives."

Lucky Strike financed the purchase through a $230 million bridge facility, its revolving credit line, and cash on hand. The company expects the transaction to reduce its debt levels.

The 58 properties span 16 states, including locations in California, Illinois, Georgia, Arizona, and Colorado. Lucky Strike operates over 360 locations across North America, providing bowling, amusements, water parks, and family entertainment centers. The company also owns the Professional Bowlers Association.

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