Ultimate bids for £20m Vimac deal

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by The PMA Team Ultimate Leisure is in talks to snap up Tyneside-based Vimac Leisure in a deal that could be worth more than £20m. Vimac, which has...

by The PMA Team

Ultimate Leisure is in talks to snap up Tyneside-based Vimac Leisure in a deal that could be worth more than £20m.

Vimac, which has a turnover in excess of £10m, was founded in October 2001 by former Newcastle Falcons Rugby Club chief executive Paul Mackings along with fellow directors Jason Greenwood and Stephen Shell.

The company runs a mixture of venues, including nightclubs and cabaret venues.

In May it bought Hush in Middlesbrough for £3m and opened the £2.2m Studio bar and nightclub in Chester-le-Street a month later.

It also owns the award-winning Crab & Lobster restaurant and hotel in Thirsk, North Yorkshire.

Vimac venues include Cafe Rock in Durham, the Studio in Glasgow, Dontinos in Hexham, Northumberland, and Milano in Rotherham, South Yorkshire.

Vimac had planned to float on the Alternative Investment Market in around 2009.

An industry source said: 'Acquiring Vimac would certainly strengthen Ultimate's position.'

Buying Vimac would be Ultimate's first major deal since the arrival of former Yates's chief executive Mark Jones in August.

He replaced former Ultimate chief executive Bob Senior following a shareholder revolt led by Dawnay Day.

Jones has already said he would be looking to acquire businesses that operate a diverse portfolio of venues but with a greater focus on bars.

He said: 'We're not just going to acquire nightclubs. I like the idea of making Ultimate a broadly-based business.

'Obviously, Ultimate's competencies and skill-set is in the late-night market and nightclubs, but I like the idea of operating premium bars and nightclubs.'

Ultimate has also tabled an indicative offer of 170p a share for Inventive Leisure. Inventive is also believed to have been approached by private-equity company Alchemy Partners about going private.

Ultimate declined to comment on the Vimac deal.

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