Investee Company – Lowen Play GmbH & Co. KG
Investee Company Business Type – Arcade Operator
Type of Financing – LBO
Equity Providers – ABN AMRO Capital
Equity Leader (Individual) – Christof Namenyi, senior investment manager, ABN AMRO Capital
Debt Providers – Bank of Scotland
Debt Type – Debt and Mezzanine Finance
Debt Leader (Individual) – Stuart Hewer, Bank of Scotland (Frankfurt)
Equity Amount – €16 million
Total Deal Value – €35 million
Other Advisors – Clifford Chance Punder, Arthur Andersen and L.E.K., and BakerMcKenzie
Comments – Lowen Play GmbH & Co. KG, the second largest arcade operator in Germany, has been acquired in a deal totalling €35 million. ABN AMRO has invested €16 million to acquire 100% of the equity of Lowen Play, with the current management of the company. The remainder of the deal has been financed by the Bank of Scotland who have provided debt and mezzanine financing.
Established in 1990 and based in Bingen, Germany, Lowen Play currently runs over 120 arcades and 100 single-site locations, with some 470 employees. Revenues in 2000 reached €35.4 million.
NSM AG was originally the holding company for Lowen Play and in September this year disposed of the gaming unit in order to concentrate on its original business interests.
The investment made by ABN AMRO Capital will enable Lowen Play to increase its share of this market and develop a buy and build strategy.
Commenting on the investment in Lowen Play, Christof Namenyi, senior investment manager of ABN AMRO Capital, said: “The company will play an active role in consolidating the fragmented German market and take advantage of further expected deregulation within Europe.”