London, 11 February 2025 – Fortress Investment Group (“Fortress”) today announced that funds managed by its affiliates (“Fortress funds”) have completed the acquisition of Loungers PLC (“Loungers”) for £354.4 million. The Scheme of Arrangement has become effective in accordance with its terms and the entire issued and to be issued share capital of Loungers is now owned by affiliates of Fortress funds.
Domnall Tait, Managing Director at Fortress Investment Group, said, “We are delighted to have completed the acquisition of Loungers, an excellent company we know has a unique place within UK hospitality. Alex, Nick and the team have already achieved impressive growth, and we look forward to supporting them as they continue to expand Loungers across the UK and further enhance the customer experience. Fortress strongly believes in the UK and experience-led retail, and our track record of making growth investments in consumer-focused businesses ensures we are well placed to help accelerate Loungers’ exciting next phase of growth.”
Alex Reilley, Chairman of Loungers, said, “Today marks the start of a new chapter for Loungers as a privately held company with a new ownership structure, and new partners in Fortress. Nick and I are very much looking forward to working with Fortress to accelerate Loungers’ growth and seizing this great opportunity to take the business to the next level.”
Nick Collins, CEO of Loungers, added, “Alex and I are delighted to have new partners in Fortress who believe in the enduring appeal of our founding principle: creating attractive all-day neighbourhood café-bars that we would want to go to ourselves. In the coming years, we’ll be able to invest more in our growth, opening more locations across the country than ever before and creating welcoming environments with a high-quality food and beverage offer for local communities.”
In total, shareholders representing more than 35.9% of the prior share capital of Loungers opted to maintain their equity holding in Loungers in the new structure – showing a strong belief in the potential of the company to continue growing under the new ownership structure.
Fortress Investment Group’s conviction in backing hospitality and experience-led retail
Fortress believes in the enduring appeal of experience-led retail and hospitality, as demonstrated by Fortress funds’ investments in Curzon, Majestic Wine, Poundstretcher, Punch Pubs and Vagabond Wine in the UK, as well as Red Lobster and the SPB Hospitality portfolio of brands including Krystal, Logan’s Roadhouse and J. Alexanders in the USA.
The acquisition of Loungers further expands Fortress’ consumer and retail portfolio, underscoring its dedication to the UK market and its role as a responsible steward of, and investor in, successful businesses.
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $49 billion of assets under management as of September 31, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.