Lion to list Loungers

Analysts believe the business is likely to be worth £250-300m when it floats, The Times reported. The proceeds will help Loungers to shrink its debt and open new facilities, the report added. 

Lion has not yet responded to requests for comment.

Lion acquired a 60% stake in Loungers in a deal valued at £137m in 2016, according to The Times. The GP drew capital from Lion Capital IV, according to the GP's website. The fund closed on £2bn in 2016.

The 2016 SBO deal saw Piper Private Equity exiting the business after four years at the helm. On initial investment in April 2012, the business comprised 20 Loungers and three Cosy Club sites in the UK. Under Piper's ownership, the company increased to 95 sites, opening 20 a year since 2014 and creating 2,000 jobs, Unquote reported in 2016. The business planned to open its 100th site by April 2017 and had a further 20 in the pipeline for the following year.

Founded in 2002 and headquartered in Bristol, the café-bar and dining business Loungers operates under the Loungers and Cosy Clubs brands. As of January 2019, it operated 140 cafés, according to its website.

According to Loungers' website, in the 52-week period ended 22 April 2018, Loungers' sales grew by 31.9% to £121.1m and the company's adjusted EBITDA increased of 31.2%, to £16.7m.

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