Loungers Shareholders Greenlight £354m Fortress Takeover
Posted by Emma on 31st Jan 2025
Loungers plc is on the brink of a significant transformation after shareholders overwhelmingly approved a £354.4 million acquisition by Fortress Investment Group. The deal, which will take the popular café-bar chain private, marks a significant moment for the UK’s casual dining sector.
At a shareholder vote, nearly 94% backed the revised offer from Fortress, a firm already invested in Peach Pubs, Majestic Wines, and Vagabond. The approval follows months of negotiations, with Fortress initially offering 310p per share before increasing its bid to 325p—a move that swayed previously hesitant investors.
The acquisition values Loungers, the operator behind Cosy Club, Loungers, and Brightside, at an enterprise value of approximately £366.6 million. With the deal set to be sanctioned in a court hearing on February 7 2025, Loungers shares will be delisted from AIM, with final trading expected on February 10. By February 11, the company will be officially re-registered as a private limited entity under CF Exedra Bidco, a firm indirectly controlled by Fortress.
A Turning Point for Loungers
The decision marks a pivotal moment for the 285-site-strong business. Despite initial resistance from major shareholders—one of whom argued that it was “the wrong time to sell”—the improved offer ultimately won support.
Loungers’ executive chairman, Alex Reilley, welcomed the outcome, stating: “We are very pleased that Fortress has decided to increase its offer, making it even more compelling for Loungers shareholders and reinforcing the Loungers directors’ recommendation that they should vote in favour of the acquisition.”
Fortress managing director Domnall Tait echoed this sentiment, reaffirming the firm’s commitment to the UK market: “This increased offer for Loungers reflects our continued belief in the business and its management team, and we look forward to supporting them through the next growth stage. Notwithstanding the recent challenges, Fortress remains a strong believer in the UK.”
What’s Next?
While the shareholder vote was a crucial hurdle, the deal still requires court approval before finalising it. The court sanction hearing on February 7 will determine whether the acquisition will proceed as planned. If approved, the scheme of arrangement will take effect on February 11, officially bringing Loungers into Fortress’s portfolio.
For Loungers, the transition to private ownership could provide fresh momentum for expansion and operational efficiencies. However, industry observers will watch closely how the group adapts to life outside the public markets.