The offer raises the value of the all-day café and restaurant group from approximately £338.3m to £354.4m.
It implies an enterprise value of approximately £366.6m and is a multiple of approximately 8.4 times Loungers' FY24 adjusted EBITDA (before site pre-opening costs) and of approximately 9.4 times Loungers' FY24 adjusted EBITDA (after site pre-opening costs).
Loungers announced back in November that it was to be acquired by Fortress.
Several shareholders subsequently hit out against the deal, with one describing it as ‘opportunistic’. However, others approved it.
Commenting on the increased offer, Loungers 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.”
Loungers warned that if the acquisition were to fail to complete and was voted down by group’s shareholders, both Reilley and group CEO Nick Collins would find their positions untenable.
Domnall Tait, Managing Director of Fortress said: “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.”
Shareholders will vote on the deal on 30 January.
Loungers’s portfolio includes the Lounge, Cosy Club and Brightside brands.
