The board of Revolution Bars Group has agreed a takeover bid worth just over £100 million from rival operator Stonegate Pub Company.
Its directors are recommending that their shareholders accept the offer of £2.03 per share which values the 68-strong group of Revolution and Revolución de Cuba bars at about £101.5 million – slightly more than the original £2 bid at the end of July.
Backers for the proposal already include Revolution group’s largest investor, Artemis Investment Management, which controls 14.77% of its shares, and Castlefield Fund Partners which has a 4.17% stake.
Revolution’s chairman, Keith Edelman, said: “We believe that the offer from Stonegate represents an attractive and certain value in cash today for Revolution shareholders, reflecting the high quality of the business, its people, market position and future prospects.
“The Stonegate proposal provides considerable opportunities for our people and for the business as a whole. Stonegate is an experienced operator in this sector that understands Revolution’s ethos with its unique premium bar offering.”
Stonegate operates 689 pubs, bars and clubs including Slug and Lettuce, Yates, Missoula, Popworld and Scream as well as many that are unbranded. In December last year, it added the Walkabout chain by taking over Intertain.
Stonegate’s chairman, Ian Payne, said: “We are delighted to announce this agreement with Revolution, which is a business we know well and whose leading position in the premium segment of the drinking out market is a highly complementary addition to our existing offering.
“Our strong reputation and position in the market firmly establishes Stonegate as the natural home for Revolution’s brands, and will allow us to enhance further the breadth of offer and occasions we cater for.
“This acquisition is entirely consistent with our stated strategy to capitalise on the town and city centre drink-led opportunity.
“Stonegate has a successful track record of investing in and growing the businesses which it has acquired. Revolution is a high-quality business with good people and an attractive consumer proposition.
“We look forward to working together with our new colleagues joining the enlarged Stonegate group to continue to provide a great experience for customers.”
Bar and club operator The Deltic Group, which made an alternative offer of a merger to Revolution Bars Group, re-stated its view that the Stonegate bid “significantly undervalues Revolution”.
In a statement, it confirmed that it was also evaluating a possible cash offer for the entire share capital of Revolution.
Pictured: Revolution in Beaconsfield, Buckinghamshire