Fortress Investment to Take Over British Hospitality Chain Loungers
Fortress Investment Group LLC has struck a £350.5 million ($444.5 million) agreement to acquire British hospitality chain Loungers PLC. The deal, which values Loungers’ equity at approximately £338 million, will remove the company from the London Stock Exchange (LSE), ending its public trading status since 2019.
Loungers, known for its café bars and restaurants, has seen substantial growth since launching its first location in Bristol in 2002. By November 2024, the company had expanded to 280 sites, encompassing three brands, and reported £346.6 million in annual sales.
The buyout price of 310 pence per share represents a nearly 30% premium over Loungers’ last closing price. Shareholders can also opt for unlisted shares in a Fortress affiliate instead of cash. Stakeholders owning 40.2% of Loungers’ shares have pledged support for the deal.
Slaughter and May represents Fortress, while Jones Day advises Loungers. Ashurst LLP provides counsel to HSBC Bank PLC, Fortress’s financial adviser. The Ashurst legal team includes prominent partners Tom Mercer and Tim Rennie.