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.

LOUNGERS, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the Retail & Consumer sector (10.9x).

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