Fortress Investment Group to acquire Loungers PLC for £338.3 million via Investing.com
LONDON – Fortress Investment Group, through its affiliate CF Exedra Bidco Limited, has agreed to purchase Loungers (LON:) PLC, valued the UK hospitality company at approximately £338.3 million. The acquisition, which will be carried out by arrangement, proposes a cash offer of 310 pence per share, marking a premium over recent trading prices.
The transaction, which equates to all issued and outstanding Loungers shares, represents a 30.3% premium to the closing price on the day before the announcement. The offer constitutes an alternative for shareholders to receive unlisted securities in the capital of CF Exedra Topco Limited, the ultimate owner of Bidco, in lieu of cash consideration.
Loungers, known as bars and restaurants, has been in an expanded area, with 280 locations in all its types since the day of the announcement. The company’s Chairman, Alex Reilley, expressed confidence in the future and expects that the partnership with Fortress will continue to accelerate growth plans.
Fortress Investment Group, which manages assets worth approximately US $48 billion, has a history of investing in consumer-focused businesses, including the UK tourism sector. Domnall Tait, Managing Director at Fortress, cited Loungers’ strong performance and management commitment as key factors in the decision to pursue the acquisition.
Loungers’ directors, advised by Houlihan Lokey (NYSE: ), unanimously recommended that shareholders accept the cash offer. However, they did not make a recommendation regarding other offers due to the variable impact on individual shareholders.
The acquisition is subject to customary conditions and regulatory approvals and is expected to close in the first quarter of 2025. The work is based on a press release statement, and more details will be provided in an upcoming Program Document.
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