Pinstripes set to go public via Banyan merger, valued at $520m

Pinstripes, a Chicago-based experiential dining and entertainment company, is set to become a publicly traded entity, at a pro forma enterprise value of about $520 million through a merger with blank check company Banyan Acquisition Corp.

By merging with the special purpose acquisition company (SPAC), Pinstripes will be able to make its public debut on the New York Stock Exchange (NYSE).

The deal involves an initial equity investment exceeding $20 million in Pinstripes by Middleton Partners. Once the transaction concludes, current Pinstripes shareholders are set to receive shares of the resulting public entity as compensation.

The agreement’s successful closure hinges on the delivery of a minimum of $75 million in gross cash proceeds to the merged company. These funds will aid in executing the company’s expansion plans and facilitating the inauguration of new locations.

The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.

Experiential dining brand Pinstripes to list on NYSE through SPAC merger, eyeing global expansion. Photo courtesy of Business Wire.

Under the merger, Pinstripes’ Founder and CEO Dale Schwartz will continue to lead the company, accompanied by Banyan’s foodservice industry veterans Chairman Jerry Hyman and CEO Keith Jaffee. The combined entity represents an attractive business model in the dining and entertainment industry, with Pinstripes positioning itself uniquely at the intersection of casual dining, entertainment, and private events.

Keith Jaffee — Banyan Acquisition Corp. CEO said: “Pinstripes has distinctly separated itself from its peers, as its phenomenal cuisine results in a 75/25 revenue split between food and games. On behalf of our fellow Banyan stockholders, we’d like to thank Dale Schwartz and his entire team, and we look forward to becoming part of the Pinstripes family.”

Pinstripes’ offerings target today’s consumers craving in-person connections, providing curated experiences designed to foster meaningful social interactions. The company generates revenue from an array of sources such as made-from-scratch dining, lifestyle and entertainment activities including bowling and bocce, and dynamic private event spaces catering to a variety of gatherings.

The company operates 13 venues across eight states and Washington D.C. and has an additional six venues under construction, slated to open by early 2024. The business combination, along with investment from Middleton Partners, will fuel the brand’s expansion strategy and further location openings.

Both Pinstripes and its real estate partners are confident in the brand’s potential to make a significant impact globally, given the rising demand for experiential concepts in both domestic and international retail and consumer markets.

Dale Schwartz said: “We founded Pinstripes in 2007 to create the fun interactions and celebrations that people crave, by uniquely combining made-from-scratch dining with the timeless games of bowling and bocce. Our iconic community-gathering venues feed the souls of guests of all ages.

“Every day and everywhere, our passionate and dedicated Pinstripes team is committed to creating extraordinary, magical connections – from the first bite, to the first strike, to the first kiss, to the first laugh – that bring out the best in everyone.”