All-day dining group Loungers has been acquired by Fortress Investment Group in a deal worth £354.4 million.
The deal comes after Fortress Investment Group made an increased and final offer, which was approved yesterday (30 January) during a court meeting and general meeting, with 93.5% of shareholders voting in favor.
Fortress initially made an offer for Loungers in November at 310p per share, valuing the business at approximately £338m, but it was rejected. Earlier this month, the investment firm raised its offer, ultimately valuing the group at £354.4m.
The increased valuation gives Loungers an enterprise value of approximately £366.6m, representing a multiple of around 8.4 times its FY24 adjusted EBITDA before site pre-opening costs and approximately 9.4 times its FY24 adjusted EBITDA after site pre-opening costs.
At the time of the increased offer, Loungers chairman Alex Reilley said: “We are very pleased that Fortress has decided to increase its offer, making it even more compelling for Loungers shareholders and reinforcing the Loungers directors’ recommendation that they should vote in favour of the acquisition.”
Loungers, the operator of Lounge, Cosy Club, and Brightside brands, runs approximately 280 locations across the UK.
It was founded in Bristol in 2002 by friends Dave Reid, Alex Reilley, and Jake Bishop, Loungers has grown into one of the hospitality sector’s most notable success stories over the past two decades.
