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GCA Altium advises Piper and founders on Loungers deal

Global investment bank GCA Altium has advised Piper and the company founders on the sale of Loungers, the UK café-bar and restaurant group, to Lion Capital in a deal worth GBP137 million.

This marks GCA Altium’s 35th transaction in the consumer and retail space since 2014, adding to deals such as Prezzo and New Look.
 
Loungers is a fast-growing business founded in Bristol in 2002 by a trio of longstanding friends, Alex Reilley, Jake Bishop and Dave Reid. Their idea was to provide customers with a ‘third space’ between work and home to meet, chat, eat and drink – a more attractive and appealing alternative to the surrounding local pubs and coffee bars. Loungers operates two brands: Lounges and Cosy Clubs.  
 
Piper invested in Loungers in April 2012 when the business comprised 20 Lounges and three Cosy Club sites across the UK. Over the past four years, the company has more than quadrupled the number of sites to 95, opening 20 sites a year since 2014 and creating employment for almost 2,000 people. The business is planning to open its 100th site by April 2017 and has a further 20 in the pipeline for the following year.
 
The team behind the business will continue their involvement for the next stage of its growth. Reilley will stay on as chairman of the group. Nick Collins, who joined as finance director in 2012 and became CEO in 2015, will continue to lead the business together with Justin Carter who joined as COO in 2015. Bishop will remain as managing director of Cosy Club.
 
Chris Curry, managing partner, Piper, says: “Loungers is an exceptional business with a highly driven and energetic management team. Its customers are incredibly loyal and love the casual, informal and slightly quirky style of the Lounges and Cosy Clubs, and the quality and value of what they offer. When we invested in the business we believed Loungers had the potential to fill the gap between pubs and coffee shops and we are proud to have proven that to be the case. There remains enormous scope for growth, with over 500 sites identified in the UK for the Lounge brand alone."
 
Reilley says: “The Piper team have been absolutely brilliant for Loungers and we’ve enjoyed a wonderful and productive partnership with them over the last five years. It has been a real pleasure and a lot of fun sharing Loungers with Piper, who exit with the business in a truly excellent place. From these strong foundations we look forward to the next phase of growth with Lion Capital, who share our excitement and passion about the future and have the experience to help us continue fulfilling our potential. We have known the Lion team for some time, and their experience in working with Wagamama and other companies in the leisure, food and retail sector will be a huge benefit as we enter the next phase of our expansion.”
 
Sam Fuller, managing director at GCA Altium, says: “This deal demonstrates the continued demand from private equity firms for premium quality casual dining businesses that have the potential to roll out nationwide. Lion Capital is an ideal partner with a proven track record of building market-leading consumer brands. We are delighted to have supported Piper and the existing shareholders and look forward to watching the business grow over the next few years.”

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