Ardent Leisure Group (ASX:AAD) has announced it will sell its Bowling & Entertainment division to The Entertainment and Education Group for $160 million, a portfolio company of Quadrant Private Equity.
The sale price represents a 32 multiple on the businesses FY17 Core EBIT.
On completion of the deal Ardent expects to be in a net cash position, with financial capacity to support growth opportunities in its Main Event and Theme Park divisions.
The purchase by Quadrant adds to its recent acquisition of the assets of Timezone group.
Shares in Ardent Leisure Group (ASX:AAD) were 3.47 per cent up in early trade at $1.79.