- Loungers
- 28 November 2024 09:06:58
Source: Sharecast
Abu Dhabi-backed Fortress, which is building a portfolio of British hospitality assets, offered 310p per share for the AIM-listed group, a 30% premium to Wednesday’s closing price. The offer values the ordinary share capital at £338.3m, and gives it an enterprise value of £350.5m.
Shares in Loungers surged as trading got underway on Thursday, adding 28% to 305.55p by 0830 GMT.
Loungers said the owner of Punch Pubs & Co and Majestic Wines was an "ideal partner" to help grow the business, which was founded in Bristol in 2002.
Alex Riley, chair, said: "We remain very confident about Loungers’ future prospects.
"We are more ambitious than ever, and we see Fortress as being an ideal partner to help us take Loungers into the next phase of is growth journey.
"We believe that he acquisition represents a compelling proposition for all of our stakeholders."
Domnall Tait, managing director at Fortress, said Loungers had a "strong and differentiated" position.
He continued: "Fortress brings to the table a successful track record of investing in consumer-focused businesses across the globe, particularly in the UK.
"Today’s announcement further strengthens Fortress’ commitment to the UK market."
As well as Majestic, Punch and now Loungers, Fortress has also taken control of British arthouse cinema chain Curzon.
The announcement coincided with Loungers’ interim results, which showed a 19% jump in revenues to £178.3m, while operating profits improved 32% to £10.2m.
Loungers said it had seen "consistently strong trading" across its Lounge, Cosy Club and Brightside bars and restaurants.
It also opened 17 new sites during the first half, leaving it on track to finish the 2025 full-year with 292 bars, cafes and restaurants.
