British café bar operator Loungers PLC has agreed to a £351 million takeover bid by U.S. investment firm Fortress Investment Group LLC, marking its exit from the London Stock Exchange.
The deal, announced Thursday, values Loungers’ entire equity at £338 million and gives the company an enterprise value of approximately £350.5 million ($444.5 million). Fortress, a global investment manager with $48 billion in assets under management as of June, will acquire all Loungers shares for 310 pence each—a nearly 30% premium on the 238 pence closing price on Wednesday.
Fortress to Boost Loungers’ Growth
Alex Reilley, Loungers’ chair, described the acquisition as a strategic milestone.
Loungers has expanded significantly since its 2002 founding, growing from a single Bristol café to three brands and 280 locations by November 27. The company reported sales of £346.6 million for fiscal year 2024.
Domnall Tait, Fortress’ managing director, praised Loungers’ market position and leadership.
Fortress also owns stakes in hospitality businesses such as Punch Pubs & Co., Majestic Wines, and Vagabond in the U.K., as well as Red Lobster in the U.S.
Legal and Financial Advisers Named
Fortress is being advised legally by Slaughter and May, while HSBC Bank PLC, with a team from Ashurst LLP, is providing financial counsel. Ashurst’s team includes partners Tom Mercer and Tim Rennie, senior associates Colin Bugler and Eilish O’Neil, and associate Patrick Chambers.
