Two City finance firms are believed to be among potential bidders interested in buying Leisure Link, a leading supplier of amusement machines to pubs.
Its current owner Duke Street Capital, a private equity firm, has reportedly received a number of offers for the company, which could fetch up to £250m.
It instructed its financial adviser SG Hambros to investigate whether to sell or float it on the stock exchange so it could recoup its investment.
According to the Financial Times, it has attracted interest from private equity firms L&G Ventures, which in February failed in a bid for 1,000 Bass pubs, and Electra Partners, which owns the Tom Cobleigh pub group. An unidentified US slot machine operator is also thought to be interested.
Another option could be to sell Duke Street's stake to Leisure Link's chief executive Russell Hoyle, the former boss of wholesaler Freetraders.
Leisure Link was formed three years ago when Duke Street backed the acquisition of Bass Leisure Machine Services. Since then, it has bought Greenalls' AWP business Stretton Leisure for £28.5m and Maygay for £18.5m.
Leisure Link "to be put up for sale" (April 7, 2001)