Oak Hill Capital to buy Dave & Buster’s

Dallas Wellspring Capital Management LLC, the private-equity parent of Dave & Buster's, is selling the 56-unit casual-dining chain to Oak Hill Capital Partners for $570 million, the companies said Monday.

The deal between Oak Hill and Wellspring, which has owned Dallas-based Dave & Buster's since 2006, is expected to close in second quarter 2010.

Dave & Buster's is the latest restaurant chain to be sold this year, following buyout announcements from CKE Restaurants, Papa Murphy's International, Wingstop Restaurants and On the Border. In addition, California Pizza Kitchen said last month it was exploring strategic alternatives; a move analysts said could result in a sale.

Oak Hill said it would work with Dave & Buster's current management team, including chief executive Steve King, as it expands the chain.

"We are very excited to partner with Oak Hill Capital given its extensive experience investing in consumer, retail and restaurant companies, as well as its long history of working successfully with management teams," King said. "We believe Oak Hill Capital will be a value-added partner that will help Dave & Buster's execute against its strategy of continuing to build its brand and expand its store base."