The owner of Punch Pubs and Majestic Wine has struck a deal to buy Loungers, valuing the café-bar group at about £338 million.
Fortress Investment Group, the US private equity firm controlled by Abu Dhabi’s Mubadala, has made an offer of 310p a share, representing a 30 per cent premium to Loungers’ closing price on Wednesday. The group’s directors have recommended that shareholders vote in favour of the deal.
Loungers, which trades under the Lounge, Cosy Club and Brightside brands, was founded in 2002 by three friends and has since expanded to 280 sites.
Alex Reilley, right, with his co-founders David Reid and Jake Bishop at their Bath branch in 2012
ADRIAN SHERRATT FOR THE SUNDAY TIMES
Fortress believes taking Loungers private would address “the performance and liquidity challenges” of the group’s share price, which has “failed to adequately reflect Loungers’ positive business performance to date”.
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