Revolution Bars Group, the operator of 73 bars and casual dining venues across the UK, had been engaged in discussions to acquire Deltic, the operator of 55 bars and clubs across the UK employing more than 3,000 people. However, it was revealed yesterday that its representatives had decided to walk away from discussions.
A statement from Revolution Bars Group titled ‘Statement regarding termination of acquisition discussions’ issued on 10 October read: “Revolution Bars Group plc announces that, further to the announcement made on 7 September 2018, discussions regarding a transaction involving a possible acquisition of the Deltic Group have been terminated.
“Following a period of engagement and due diligence, the board has concluded that a transaction with Deltic would not be in the best interests of the company's shareholders. The company will continue to focus on delivering the positively received strategy outlined in its preliminary results announcement made on 2 October 2018.”
As reported by The Morning Advertiser, Revolution Bars Group recently revealed a £3.6m loss in its full-year results off the back of periods of extreme weather and England's unexpected football success.
In a response to the Revolution Bars statement, Deltic revealed the group’s representatives were disappointed the talks had been “leaked”.
A statement from Deltic read: “The Deltic Group notes the statement from Revolution Bars Group plc that it has decided not to proceed with merger talks with Deltic. It was disappointing that such talks, that were only ever at an early stage, were leaked and that the decision not to proceed comes as little surprise.
“Deltic still believes there is a compelling financial case for a merger between the two companies but respects the decision of the board of Revolution. Deltic remains a shareholder in Revolution Bars Group plc and will follow developments closely.
“The board would also like to reiterate that Deltic is a well-run business with a strong financial performance over many years. The Revolution merger proposal was only one of several routes that Deltic directors were exploring in order to take the company forward. It continues to believe the late-night economy is a good investment and the doubling of profits over the last six years, with approximately the same number of venues, underpins that view.
“Deltic will continue to seek profitable growth both through continued investment in the current business and through a number of possible strategic acquisitions.”