Townsquare Selling Off NAME
• Less than three years after expanding into the amusement sector, Townsquare Media announced that it has completed the sale of North American Midway Entertainment, LLC (“NAME”) to North American Fairs, LLC, owned by Danny Huston, for $23.5 million plus a 15% residual interest in any future proceeds of a sale of NAME in the next ten years.
It was August of 2015 when we initially reported Townsquare had entered into a definitive purchase agreement to acquire NAME, which was described as the largest provider of rides, games and food concessions in North America for approximately $75.5 million. In 2017, Townsquare announced that it was initiating a strategic review of its Entertainment segment, which included NAME.
Under the terms of the purchase agreement, North American Fairs, LLC will acquire all of the issued and outstanding membership interests of NAME’s parent company, Heartland Group, LLC, from the Company for total cash consideration of $23.5 million. In addition, Townsquare will have the right to receive 15% of any sale proceeds if NAME is sold, in whole or in part, in the next ten years. The Company expects to hold the net cash proceeds from the sale on its balance sheet, pending reinvestment.
