Context

This transaction is a public-to-private leveraged buyout wherein Fortress Investment Group acquires the entire share capital of Loungers. Executed via a recommended scheme of arrangement, the operation successfully delists the target from the public stock exchange following a highly focused and competitive sale process. As part of the structured agreement, existing shareholders were offered the flexible option to exchange their shares for rollover securities alongside the primary cash offer. The strategic rationale driving this major consolidation is to leverage Fortress Investment Group's profound hospitality expertise and massive capital reserves to aggressively fuel Loungers' ambitious national rollout strategy and rapidly multiply its venue portfolio.

Target

Loungers is a prominent operator of café bars, café restaurants, and roadside dining establishments across the United Kingdom. Managing a diverse portfolio of complementary brands, the enterprise boasts a strong track record of organic growth and robust profitability. Its success is heavily driven by an ambitious, continuous national rollout strategy and consistent like-for-like sales growth across its numerous locations. By offering highly appealing, relaxed dining and drinking environments, the firm has established a highly recognizable footprint in the domestic hospitality landscape and remains firmly positioned to continuously expand its venue network over the coming years.