Loungers shareholders approve £354m bid from Fortress

Loungers shareholders have voted to accept a £354.4m bid from Fortress Investment Group.

Almost 94% of shareholders voted in favour of the revised deal from Fortress – which also backs Peach Pubs, Majestic Wines and Vagabond – after its first bid of 310p a share was voted down.

The revised deal of 325p for the 285-strong group values the business at £354.4m and implies an enterprise value of the Cosy Club, Loungers and Brightside operator of approximately £366.6m.

The deal will be sanctioned in a court hearing expected to take place on 7 February. 

The deal follows months of wrangling from shareholders who were originally resistant to a deal, with one large backer claiming it was the wrong time to sell. 

But the revised offer from Fortress, which will run Loungers with the newly established company CF Exedra Bidco, has now been accepted.

When the improved bid was made, Loungers’ executive chairman Alex Reilley said: “We are very pleased that Fortress has decided to increase its offer, making it even more compelling for Loungers shareholders and reinforcing the Loungers directors’ recommendation that they should vote in favour of the acquisition.”

Domnall Tait, managing director of Fortress, added: “This increased offer for Loungers reflects our continued belief in the business and its management team, and we look forward to supporting them through the next stage of growth. Notwithstanding the recent challenges, Fortress remains a strong believer in the UK.”