The acquisition will help GENDA expand its
presence in the United
States
CHICAGO, June 20,
2024 /PRNewswire/ -- Brown Gibbons Lang & Company
is pleased to announce GENDA Inc. ("GENDA") has signed a
definitive agreement to acquire all equity interests of National
Entertainment Network, LLC ("NEN"), a leading operator and provider
of amusement vending machines in the
United States through Kiddleton, Inc. ("Kiddleton"), a
Dallas-based consolidated
subsidiary of GENDA. BGL's Consumer investment banking team is
serving as the exclusive financial advisor to GENDA in the
transaction.
Headquartered in Tokyo, Japan,
GENDA is an entertainment company that aims to increase the "total
volume of fun" around the world through its diversified range of
business activities, including amusement arcade, karaoke, food and
beverage, character merchandising, and content & promotion.
GENDA's platforms include GiGO and the karaoke chain BanBan, as
well as mini locations of non-staffed gaming areas in Japan, North
America, mainland China,
the UK, and across the Middle
East.
Kiddleton, an operator in GENDA's mini-location business in the
U.S., has more than 400 locations that offer small Japanese-style
prize machines (arcade games designed to win prizes) and prizes
with Japanese-style "Kawaii" designs, which were previously
unavailable in the U.S. market. GENDA is developing its business
with a unique focus on "products and experiences that can only be
obtained here."
NEN is a leading operator and provider of amusement vending
machines, including skill cranes, bulk vending, "kiddie" games, and
video games across approximately 8,000 locations in the United States. NEN has achieved sales of
approximately $100 million and
operating income before depreciation and amortization of
approximately $8 million. NEN boasts
a large network of grocery and retail customers in the U.S.,
including Walmart, Kroger, and Denny's. Additionally, NEN has a
nationwide maintenance network and operates a manufacturing
facility in Grand Prairie, Texas,
where they repair, wrap, and store gaming equipment. NEN is working
on a digital initiative that allows users to take part in a digital
rewards program and allows players to experience free plays by
scanning QR codes on machines.
GENDA anticipates integrating the NEN acquisition with
Kiddleton's existing expertise, which features sales per location
three times higher than NEN's. The integration will include NEN's
maintenance networks, streamlined operations for cash collection
and prize replenishment, prize and equipment procurement synergies,
the rollout of additional credit card readers, and the promotion of
digital membership programs. This acquisition is part of GENDA's
roll-up strategy to expand business operations in the United States and increase profit
contributions to the companies in GENDA's company group.
BGL's Branded Consumer Products investment banking team has
extensive expertise and a track record of successfully assisting
branded consumer companies achieve outstanding results across a
range of subsectors. Our Consumer Group is a leader in eCommerce
investment banking for the middle market. Our team has the
technical expertise, positioning strategies, and growth-oriented
projection models to ensure branded and managed marketplace DTC
& B2B eCommerce platforms are optimally positioned to achieve
outlier valuations
To learn more about the state of M&A across the Consumer
industry, including how to navigate the challenges and
opportunities in today's market, download our most recent Insider
here: https://bit.ly/bglConsumerResearch
About Brown Gibbons Lang & Company
Brown Gibbons
Lang & Company (BGL) is a leading independent investment bank
and financial advisory firm focused on the global middle market.
The firm advises private and public corporations and private equity
groups on mergers and acquisitions, capital
markets, financial restructurings, business valuations
and opinions, and other strategic matters. BGL has
investment banking offices in Chicago, Cleveland, Los
Angeles, and New York, and
real estate offices in Chicago,
Cleveland, and San Antonio. The firm is also a founding
member of Global M&A Partners, enabling BGL to service clients
in more than 35 countries around the world. Securities transactions
are conducted through Brown, Gibbons, Lang & Company
Securities, LLC, an affiliate of Brown Gibbons Lang & Company
LLC and a registered broker-dealer and member of FINRA and SIPC.
For more information, please visit www.bglco.com.
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