Experiential Retailer Pinstripes Going Public Via SPAC, Plans 150 Locations
Experiential restaurant chain Pinstripes is making moves to go public to help fuel a goal of expanding to 150 stores.
The company plans to merge with special-purpose acquisition company Banyan Acquisition Corp. in a deal that values the combined company at around $520M, Pinstripes announced Friday. The deal includes upfront equity of $20M from Middleton Partners.
The merger is expected to close in the fourth quarter.
The concept, which features an Italian restaurant along with bowling and bocce, has 13 locations today with six more under construction that are scheduled to open by the end of next year. The company said the merger will help it reach a goal of 150 locations in the U.S., plus an eventual international expansion.
“We are at a strategic inflection point of substantial growth, and believe we are well-positioned to capitalize on the exciting experiential trends in the global marketplace," Pinstripes CEO Dale Schwartz said in a statement.
Although the popularity of going public through a SPAC has died down since the wave of deals in 2020 and 2021, Pinstripes is positioning itself as a profitable choice for a SPAC merger. The company said it is projected to have adjusted earnings before interest, taxes, depreciation and amortization between $30M to $33M in 2024, with revenue of $185M to $195M.
In recent years, experiential concepts like ax-throwing, mini-golf and pickleball courts have been gaining popularity among investors that see it as a key to reinvigorating shopping centers.
Pinstripes has raised $25M in equity from groups including Hudson's Bay, Brookfield Properties and Simon Property Group, Restaurant Dive reported. This interest from investors and real estate developers has helped the chain with its expansion plans.
The restaurant usually acts as a major anchor tenant in mixed-use complexes with an average space of 27K SF, Restaurant Dive reported.
The company's 13 locations span eight states and the District of Columbia, and it has six more under construction in Florida, California and New Jersey. It opened its first location in Chicago in 2007.
