Nightcap considers Revolution purchase

Bar investment group Nightcap is assessing options to acquire sites, subsidiaries, assets or brands from Revolution Bars Group.

UK bar chain Revolution announced a plan to restructure its business through an emergency fundraising on 10 April, with expectations that it would close 18 sites. It also launched a formal sale process of its shares as an alternative to the restructuring plan.

Nightcap and Revolution have both confirmed they are in discussions, although Nightcap is not participating in the formal sales process for Revolution.

Both companies stated that the announcement was not a firm intention of a takeover.

Nightcap said that “assessing the options is in line with the company’s ambition to create the UK’s leading bar group by consolidating the drinks-led premium bar segment of the UK hospitality sector through strategic acquisitions. The board considers that certain brands of Revolution Bars could be an excellent addition to the company’s existing portfolio of brands.”

Nightcap’s portfolio of UK bar chains include Dirty Martini, which it acquired in June 2023; The Cocktail Club, which it purchased in January 2021; the Adventure Bar Group, which it bought in May 2021, and the Barrio Bar Group, which it acquired in November 2021.

Revolution Bars operates 58 bars and 22 bars under the Revolution, Revolución de Cuba and Peach Pubs brands.

In its unaudited interim results for the 26 weeks ended 30 December 2023, the firm generated revenue of £82.3 million (US$103.4m) and profit before tax of approximately £3.1m (US$3.9m). Its total asset value is approximately £133m (US$167m).

The CGA RSM Hospitality Business Tracker, which includes data from Revolution Bars Group, reported that bar chains in Britain were hit with their third consecutive month of declining sales in March.