Fortress Investment Group has tabled a £338.3m takeover offer for Loungers, a London-listed hospitality group with 280 cafés and restaurants.
The US investor’s offer is 310p per Loungers share – higher than the company’s all-time high for a closing share price, and a 30.3% premium to yesterday’s closing price.
Recommending the takeover to shareholders, Loungers’ directors said the company’s market capitalisation and implied enterprise valuation “have trailed its operating performance in the period since IPO”.
Fortress said it would continue to grow Loungers’ network of outlets under its ownership. Its other consumer-focused investments in the UK include Majestic Wines and Punch Pubs & Co.
Loungers chairman Alex Reilley 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 have 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.”
Domnall Tait, managing director at Fortress, added: “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.”
Image © Loungers
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