Oak Hill-backed Dave & Buster’s explores IPO or sale

The Dallas-based operator of restaurants with games for grown-ups, which scrapped plans to go public in October 2012, is working with Goldman Sachs and Jefferies on the potential sale, the sources said.

Dave & Buster’s, owned by private equity firm Oak Hill Capital Partners, was targeting EBITDA of nearly $130 million in fiscal 2013, according to a company filing.

The company may fetch 8 to 9 times that figure in a sale, one of the sources said. The sources asked not to be named because the matter is private.

Oak Hill acquired Dave & Buster’s for $570 million in May 2010.

Dave & Buster’s, Goldman, Jefferies and Oak Hill declined to comment.

Founded in 1982, Dave & Buster’s is an owner and operator of 65 venues that offer entertainment for adults and families such as sports-oriented, video and simulation games. The venues also serve food and beverages.

Dave & Buster’s is the latest in a string of restaurant chains that are trying to go public or sell themselves as market valuations for the sector continue to rise.

CKE, the restaurant group that owns the Carl’s Jr and Hardee’s chains, sold to buyout firm Roark Capital in November for between $1.65 billion and $1.75 billion.

Hospitality firm Carlson is attempting to sell its TGI Fridays business, while Ruby Tuesday Inc is also on the block, sources familiar with the matter have said.

Soyoung Kim and Olivia Oran are reporters for Reuters News in New York