Pinstripes, the Northbrook, Ill.-based chain of food-and-bowling complexes, plans to go public as part of a merger with the SPAC Banyan Acquisition Corp., the companies announced on Friday.
The deal with Banyan, a special purposes acquisition company, will value Pinstripes at about $520 million. The deal includes an up-front equity investment of more than $20 million from the investment firm Middleton Partners. Pinstripes operates 13 locations in eight states and has six under construction and believes it has the potential to open 150 locations across the U.S.
The company expects to generate revenue in 2024 of between $185 million to $195 million and adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, of between $30 million and $33 million.
It is part of a growing generation of “eatertainment” concepts, or brands that combine entertainment with full menu offerings and which are led by the publicly traded Dave & Buster’s as well as the food-and-golf concept Topgolf. There are concepts for minigolf, pickleball and other activities.
A SPAC is a publicly traded shell company that merges with typically private companies, takes on their name and takes them public in the process. It is generally considered an easier way to go public, though without the attention that typically comes from a traditional IPO.
After the merger, Pinstripes will list on the New York Stock Exchange under the ticker symbol PNST.
“We founded Pinstripes in 2007 to create the fun interactions and celebrations that people crave, by uniquely combining made-from-scratch dining with the timeless games of bowling and bocce,” Dale Schwartz, founder and CEO of Pinstripes, said in a statement. He said the company was at a “strategic inflection point of substantial growth” and said the company is “well-positioned to capitalize on the exciting experiential trends in the global marketplace.”
Banyan is banking on the growing eatertainment trend to fuel Pinstripes’ growth in the coming years. Its locations can drive traffic to retail centers, where it has substantial growth potential.
“We sought a company with a strong market position, competitive advantages and a highly experienced management team that has a proven track record of maximizing value while upholding the utmost integrity,” Jerry Hyman, chairman of Banyan, said in a statement.
The deal comes just a few weeks after Pinstripes announced that it had received an investment from Granite Creek Capital Partners.
SPAC deals are relatively common in the restaurant industry. Several such deals were expected when numerous blank check companies were formed to target restaurants, though none of them ended up completing a deal within the industry.
Banyan was founded in 2021. Hyman, its chairman, is a former CEO of restaurant supplier TriMark USA. Its CEO, Keith Jaffee, worked with commercial foodservice equipment and consumer product companies.
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