Transaction

Transaction Details

Closed
April 29, 2019

Sector

Consumer / Retail / E-commerce / Leisure

Deal Value

£185M

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GCA Advises Loungers on Its IPO

GCA acted as financial advisor and nominated advisor (Nomad) on the AIM IPO of Loungers plc, the growing café bar operator. The transaction valued the company at an enterprise value of £212.5M ($275M) and raised £83.3M for the company and existing shareholders. The IPO strengthens Loungers’ position for the next stage of its development, providing it with an appropriate capital structure and enhanced profile as it looks to continue to roll out approximately 25 sites a year.

Loungers operates 146 café-bar-restaurants under two distinct but complementary brands, Lounge and Cosy Club, with a focus on hospitality, value for money and the local community.

The company’s founders, management team and the private equity backers are retaining a combined 55% stake in the business post-IPO and remain committed to driving continued growth and value as a listed company.

The IPO was successful despite an uncertain political and macro-economic environment and concerns about the UK consumer sector.

Nick Collins, Chief Executive Officer of Loungers plc, said: “We are delighted that our unique business has resonated strongly with investors. We firmly believe in the ongoing story of this brilliant company, and we look forward to life as a listed business.”

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