AusLeisure

Private equity firm Next Capital is reportedly looking at exit options for its entertainment group Funlab, which includes the popular Strike Bowling, Holey Moley and Sky Zone brands.

Next Capital took a controlling 70% interest in Funlab in 2016 in a $60 million deal, working with Chief Executive and founder, Michael Schreiber.

Schreiber established the first Strike Bowling in 2001, before expanding the Funlab business across the 13 venues, including laser tag, karaoke and escape rooms.

Three Sky Zone indoor trampoline parks were added under a franchise agreement with a US franchisor, while Holey Moley - Australia's first mini-golf night club - followed.

With 10 Holey Moley sites in all capital cities in Australia, Funlab has also recently added new concepts: Archie Brothers Cirque Electriq - a large format venue with arcade, bumper cars, and 3D cinema and carnival-style food and drinks - and B Lucky & Sons, which has arcade games/prizes.

In April, Funlab plans on opening Jukes karaoke and Red Herring escape rooms at Crown Melbourne.

It has also expanded internationally with Holey Moley attractions opening in Auckland and Holey Moley opened in Singapore in the last quarter of 2018.

Next Capital partner John White told The Australian Financial Review said both of these venues were performing strongly and had validated the expansion of Funlab brands internationally.

White advised that group sales have tripled over the past 2.5 years to $100 million, commenting “we are looking to double the business over the next few years.”

Commenting on this expansion, Schreiber added “we have concepts that stand on the global stage.

"We are working on what an international plan into Asia looks like, using Singapore as a springboard. And we are evaluating the USA and the UK, where language is not a barrier to entry."

White said the business had performed well over the past 18 years, regardless of the times, and including through the GFC, "indicating people still want to have fun in bad times."

White said while an IPO could be an option to back Funlab's future growth plans, he was also keen to talk to trade buyers, and at this early stage there is no preference. He revealed that Next Capital would consider keeping part of its stake.

Next Capital over the years has had success with ASX floats of vitamins group Vitaco in 2015 (which was bought by the Chinese interests) and retailer JB Hi-Fi in 2003.

Image: Skyfit at Sly Zone.

Related Articles

16th December 2018 - Funlab opens new Strike Bowling attraction in Perth

11th December 2018 - Funlab opens its largest Holey Moley attraction at Clarke Quay in Singapore

22nd November 2018 - FunLab celebrates reaching $100 million in revenue with a national initiative

29th September 2018 - Holey Moley announces first New Zealand mini-golf attraction

21st July 2018 - Holey Moley opens new attraction in Wollongong

5th December 2017 - Holey Moley Golf Club opens in Perth

29th June 2017 - Attractions operator Funlab acquires AttracTivity entertainment centre brand

12th December 2016 - Next Capital acquires FEC operator Funlab

23rd September 2015 - New Sky Climb attraction opens at Sky Zone Alexandria

20th July 2014 - First Sky Zone trampoline arena launches in Brisbane

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