Hollywood Bowl Group plc (LSE:BOWL) acquired Teaquinn Holdings Inc. from Pat Haggerty and his Family Trust for CAD 34 million on May 24, 2022. Total consideration consists of CAD 17 million, to be satisfied by an initial payment of CAD 13.6 million in cash and a deferred consideration of CAD 3.4 million. The deferred consideration will be payable at the earlier of Pat Haggerty leaving the business and the end of FY2025. Pat Haggerty will be incentivised by a separate cash-based earn out scheme which will be based on an EBITDA multiple and the financial performance of Teaquinn. The earn-out crystalises no earlier than the end of FY2025. Thetotal aggregate amount payable under the terms of the Acquisition, including the earn-out is capped at CAD 34 million. The Acquisition will be funded from the Group's existing cash resources and is expected to be earnings accretive for the year ending FY2023. For the financial year ended 31 December 2021, Teaquinn reported unaudited EBITDA of CAD 2.7 million and Net Income of CAD 1.9 million. Pat Haggerty, will remain with the business and, together with his management team, who are also planning to stay with the business, will be responsible for delivering the expansion plan.

Hollywood Bowl Group plc (LSE:BOWL) completed the acquisition of Teaquinn Holdings Inc. from Pat Haggerty and his Family Trust on May 24, 2022.