Loungers has 290 sites across the UK. Credit: fiphoto/ Shutterstock.

Loungers has announced its acceptance of an all-cash takeover proposal from Fortress Investment Group. 

According to reports in the Guardian, the takeover deal is worth £338.3m ($426.6m) 

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The transaction will complete in the first quarter of 2025 and be executed through a court-sanctioned scheme of arrangement.  

Operating under the Lounge, Cosy Club and Brightside brands, Loungers has established a significant presence in the UK with 290 sites.  

New York City-based Fortress, managing assets worth $48bn, has offered 310 pence per share, a 30% premium over Wednesday’s closing price of 238 pence, as reported by BusinessLive.  

The deal places Loungers’ equity value at £338.3m and its enterprise value, including debt, at £350.5m, as reported in Alliance News via London South East. 

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The board of Loungers unanimously endorsed the acquisition terms, with 40% of shareholders committing their support through irrevocable undertakings to CF Exedra Bidco, a newly formed entity for this acquisition which is indirectly owned by Fortress.

Loungers co-founder Alex Reilley said: “Loungers has come a long way since we opened our first site in Bristol in 2002. We are more ambitious than ever and we see Fortress as being an ideal partner to help us take Loungers into the next phase of its growth journey.  

“We believe that the acquisition represents a compelling proposition for all of our stakeholders and will allow us to execute our ambitious growth plans even more decisively and effectively.” 

Fortress, majority owned by Mubadala Investment Company, has invested in UK companies including Majestic Wines.  

Fortress managing director Domnall Tait said: “Fortress is pleased to present this offer for Loungers, a company we believe holds a strong and differentiated position in its industry. Loungers’ Directors have delivered impressive increases in the number of locations, same-store sales and revenues over the past several years – in spite of the recent challenges faced by the wider hospitality sector.”