Loungers sold to US investment firm in £338m deal
Under the terms of the acquisition, Fortress has offered 310p for each Loungers share
Café, bar and restaurant chain Loungers is set to be sold for £338m to US investment firm Fortress Investment Group.
Loungers, which operates the Lounge, Cosy Club and Brightside concepts, currently has 280 venues across the UK.
Under the terms of the acquisition, Fortress has offered 310p for each Loungers share.
Previously, Fortress has successfully invested in and supported the growth of Punch Pubs and Co., Majestic Wines and Vagabond in the UK. The investment company has said to “believe in Loungers’ growth prospects” and it recognises that Loungers’ portfolio of complementary brands “resonate strongly” with the UK consumer.
The restaurant chain grew from one brand and one site in 2002 to three brands and 280 sites. In addition, as of FY24 the group reported £346.6m in sales.
Commenting on the acquisition, Alex Reilley, chairman of Loungers, said: “Loungers has come a long way since we opened our first site in Bristol in 2002, and we are hugely proud of the jobs we’ve created, the positive impact we’ve made on the UK’s high streets, and the outstanding hospitality our amazing teams have provided since then.
“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 its growth journey. We believe that the acquisition represents a compelling proposition for all of our stakeholders and will allow us to execute our ambitious growth plans even more decisively and effectively.”
Domnall Tait, managing director at Fortress, added: “Fortress is pleased to present this offer for Loungers, a company we believe holds a strong and differentiated position in its industry. Loungers’ directors have delivered impressive increases in the number of locations, same-store sales and revenues over the past several years – in spite of the recent challenges faced by the wider hospitality sector. This growth, and management’s continued commitment to the business, give us confidence in the company’s growth potential and in the opportunity to increase value.
“Fortress has a high conviction in the future of experience-led retail and hospitality, and believes this is highly complementary to Loungers’ business model, strong operational performance, and impressive management team. Fortress looks forward to partnering with Loungers’ management and to providing them with support to drive the business through its next stage of growth.”
