The acquisition was agreed at the end of January and now the entire issued and to be issued share capital of Loungers is now owned by affiliates of Fortress funds.
Fortress Investment Group managing director Domnall Tait said: “We are delighted to have completed the acquisition of Loungers, an excellent company we know has a unique place within UK hospitality.
“Alex [Reilley], Nick [Collins] 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.
Well placed for growth
“Fortress strongly believes in the UK and experience-led retail, and our successful track record of investing in and growing consumer-focused businesses ensures we are well placed to help accelerate Loungers’ exciting next phase of growth.”
Loungers, the all-day bar-restaurant-café operator, runs sites under the Lounge, Cosy Club and Brightside brands and announced a revenue lift of 19.2% and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) up 25.0%, in the 24 weeks ended 6 October 2024.
Loungers chairman Alex Reilley added: “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.
Next level
“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.”
Loungers CEO Nick Collins said: “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.”
In total, shareholders representing more than 35.9% of the prior share capital of Loungers opted to maintain their equity holding in Loungers in the new structure – showing a strong belief in the potential of the company to continue growing under the new ownership structure.
