Fortress Investment Group increases offer for Loungers takeover
Fortress Investment Group has reached an agreement with the board of Loungers to acquire the hospitality group after submitting an improved offer worth over £350m.
In November, the two parties had reached an agreement for Fortress to acquire Loungers for almost £340m.
However, the new offer values the entire issued, and to be issued, ordinary share capital of Loungers at approximately £354.4m, with an enterprise value of around £366.6m. This represents a premium of 36.6% compared to Loungers’ closing share price before the original bid was made.
Fortress – which also owns the Majestic Wines and Poundstretcher brands – said in November that it believes it is a strong partner for Loungers, its management team, its employees and its other stakeholders in the next stage of the group’s growth journey. The investment group added that it believes in Loungers’ growth prospects, and the future of experience-led retail and hospitality offerings in the UK market.
Loungers operates over 280 sites across the Lounge, Cosy Club, and Brightside brands.
Alex Reilley, chair of Loungers, 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.”
Domnall Tait, managing director of Fortress Investment Group, added: “This increased offer for Loungers reflects our continued belief in the business and its management team, and we look forward to supporting them through the next stage of growth. Notwithstanding the recent challenges, Fortress remains a strong believer in the UK.”