UK chain Loungers sold in £137m deal

Lion Capital has acquired a majority stake in UK café-bar chain Loungers in a transaction that values the business at £137 million.

The consumer-focused investor acquired the share from private equity firm Piper’s, and also took on a portion of the founders’ stake in the business.

Founded in 2002, Lounges operates 94 sites across the UK including bar chain Cosy Club. A further 20 sites are set to open in 2017. Co-founders Alex Reilley and Jake Bishop will remain in the business for the “next stage of its growth”.

Reilley commented: “The Piper team have been absolutely brilliant for Loungers and we’ve enjoyed a wonderful and productive partnership with them over the last five years. It has been a real pleasure and a lot of fun sharing Loungers with Piper, who exit with the business in a truly excellent place.

“From these strong foundations we look forward to the next phase of growth with Lion Capital, who share our excitement and passion about the future and have the experience to help us continue fulfilling our potential.”

James Cocker, partner, Lion Capital said: “We have admired Loungers for several years as one of the most distinctive and scalable foodservice propositions in the UK. Its casual, all-day offering is well-aligned with consumer trends and has been proven to trade successfully in an extraordinarily diverse range of locations.

“Alex, Jake, Nick and their team have built a first-class business with a wonderful culture. We are tremendously excited to partner with them for the next phase of the company’s development.”

Earlier this month, Stonegate Pub Company, owner of Slug & Lettuce and Yates pub chains acquired Australian bar brand Walkabout for an undisclosed sum.