You won't have shares of AMF Bowling Worldwide
AMF has been around for a while. Formed in 1900, it wasn't until the late 1930s that it hired the inventor of the pinspotter to develop his idea. But its recent years have been, well, spotty. As recently as early 2002, for example, the company was still under Chapter 11 bankruptcy protection. Since then, the shares have actually beaten the S&P 500 -- though they've taken some remarkable swings in doing so.
One presumes that Code Hennessy & Simmons has a pretty good plan for avoiding the sort of problems that have dogged AMF in recent years. While it has a well-established brand worldwide, it's also been dogged by debt and operating expenses and has had trouble making money lately. No doubt the acquirer will continue some efforts begun by AMF, which includes the shuttering of underperforming bowling centers.
But, unless the private equity firm eventually decides to take the company public again, all this is now largely irrelevant for most folks who aren't bowlers, AMF employees, or private equity firms.
Going private is often the best option for companies with valued assets that have trouble maintaining investor support for one reason or another. Some of the best brands around -- M&M Mars, Domino's Pizza, and Hallmark are just a few -- have never seen their shares traded on the open market. (Selena Maranjian's take on the key differences between public and private companies has more.) The ability to operate without the market's scrutiny can be a boon.
In recent months we've seen New York drugstore chain Duane Reade
One hopes a better future lies ahead for AMF, a venerable company.
Think bowling shoes are the acme of hip? Share your tales from the lanes on our Sports discussion board.
Fool contributor Dave Marino-Nachison doesn't own any of the companies in this story. He can be reached via email.
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