Fortress Investment Group announced that funds managed by its affiliates completed the acquisition of Loungers for £354.4 million. The deal became effective in accordance with its terms, and the entire issued and to-be-issued share capital of Loungers is now owned by affiliates of Fortress funds.
In total, shareholders representing over 35.9% of Loungers’ prior share capital opted to maintain their equity holding in Loungers in the new structure, showing a strong belief in the company’s potential to continue growing under the new ownership structure.
Fortress believes in the enduring appeal of experience-led retail and hospitality, as shown by Fortress funds’ investments in Curzon, Majestic Wine, Poundstretcher, Punch Pubs, and Vagabond Wine in the UK, and Red Lobster and the SPB Hospitality portfolio of brands including Krystal, Logan’s Roadhouse and J. Alexanders in the USA.
The acquisition of Loungers further expands Fortress’ consumer and retail portfolio, underscoring its dedication to the UK market and its role as a responsible steward of and investor in successful businesses.
KEY QUOTES:
“We are delighted to have completed the acquisition of Loungers, an excellent company we know has a unique place within UK hospitality. Alex, Nick and the team have already achieved impressive growth, and we look forward to supporting them as they continue to expand Loungers across the UK and further enhance the customer experience. Fortress strongly believes in the UK and experience-led retail, and our track record of making growth investments in consumer-focused businesses ensures we are well placed to help accelerate Loungers’ exciting next phase of growth.”
- Domnall Tait, Managing Director at Fortress Investment Group
“Today marks the start of a new chapter for Loungers as a privately held company with a new ownership structure, and new partners in Fortress. Nick and I are very much looking forward to working with Fortress to accelerate Loungers’ growth and seizing this great opportunity to take the business to the next level.”
- Alex Reilley, Chairman of Loungers
“Alex and I are delighted to have new partners in Fortress who believe in the enduring appeal of our founding principle: creating attractive all-day neighbourhood café-bars that we would want to go to ourselves. In the coming years, we’ll be able to invest more in our growth, opening more locations across the country than ever before and creating welcoming environments with a high-quality food and beverage offer for local communities.”
- Nick Collins, CEO of Loungers
