Revolution sets sights on brand acquisition
REVOLUTION Bars Group is in discussions to buy four bars in Edinburgh for around £16m.
The Ashton-under-Lyne company operates 62 premium bars across the UK, under two brands – Revolution and Revolución de Cuba.
The group said the proposed acquisition will introduce a new brand to the group portfolio, which would significantly enhance earnings in the next financial year as it expects to roll out the as yet unamed brand to other sites.
The four bars reported an aggregate site EBITDA of £3.3m for the financial year to April 26, 2015.
RBG will pay for the acquisition with new debt through a “relatively small” placing of new ordinary shares for cash and the issue of ordinary shares to the vendors.
However, it warned that discussions were ongoing and, particularly in light of the results of the EU referendum , may or may not result in any transaction being agreed.
The latest expansion plans follow the group’s entry to AIM just over a year ago, which valued the business at around £100m.
The group’s half year results showed revenue increased 2.2% to £59.2m, while pre-tax profits hit £4.7m to December 2015.
Manchester’s Oxford Road was home to the group’s first Revolution bar 20 years ago – it would like to hit a critical mass of 140 venues and plans to open five to six new venues a year.