October 24, 2017
Consumer, Retail, E-commerce and Leisure
M&A, Debt advisory
GCA Altium advises TeamSport on its sale to Duke Street
GCA Altium acted as exclusive financial advisor to TeamSport, the UK's largest indoor go-karting operator, on its sale to Duke Street Capital.
Founded in 1992, TeamSport has grown into the UK's largest operator of go-kart tracks and the second largest globally. In 2013, the company completed a £10m management buyout led by Dominic Gaynor and backed by Connection Capital. Since the buyout, TeamSport has achieved impressive growth through a combination of like-for-like sales improvement, new site openings and enhanced performance from acquired tracks.
The company now operates 23 tracks across the UK, including five in London, and is on track to deliver £5.6m EBITDA in the current year.
TeamSport’s premium leisure offering combines enthusiasm with professionalism: it provides exciting karting experiences at high quality facilities, including on-site restaurants and bars, all delivered with exceptional customer service.
The UK go-karting sector remains highly fragmented, comprising more than 200 mainly independent, single-site operators. TeamSport’s next largest competitor has four sites. The latest investment from Duke Street provides funding for the next stage of expansion as the company seeks to continue its strategy of opening five tracks per year, with the added potential to grow internationally.
The transaction represents GCA Altium’s 12th UK consumer transaction in the last 12 months, reinforcing our reputation as one of the leading mid-market consumer sector M&A advisors.
Dominic Gaynor, CEO of TeamSport, commented: "GCA Altium ran a highly efficient and effective process. They invested time up front with the management team to properly prepare the business and then used their considerable experience and sector expertise to guide us through the sale process. The team at GCA Altium were diligent, attentive and senior-led throughout and delivered a fantastic outcome for the shareholders of Teamsport."
Christopher Jones, Managing Director at GCA Altium, said: "It has been a pleasure to advise the management and shareholders of TeamSport on this transaction. TeamSport has built a formidable competitive advantage in the karting sector and is positioned to capitalise on the sustained shift in consumer spending towards experiential leisure. We have little doubt that TeamSport will continue to thrive under Duke Street’s stewardship and look forward to following their success."