Private equity backers merge CanDu and Sports Cafe

Agilo, the investment fund, is to merge its recently acquired Sports Cafe and CanDu Entertainment businesses under a new management team.

Following its purchase of Sports Cafe last month, Agilo has completed on a deal to buy Candu Entertainment from its administrators and plans to bring the two entities together.

The new venture will be headed by former Novus Leisure commercial director, James Spragg.

Speaking of the group's second transaction in the licensed sector in as many months, Jason Granite, one of Agilo's founding co-partners, declined to say how much the group had paid for CanDu, which operated nearly 40 late night clubs and high street bars prior to the deal.

"This transaction has allowed the business to shed its unprofitable venues and created a highly profitable leisure group," he said. "We remain very excited about other opportunities in the sector.

"The main board will consist of Tim Roberts, James Spragg and Martin Brayshaw. They have a wealth of experience and we are providing significant funds for the team to help grow the business."

CanDu was formed via a Close Brothers-backed management buyout from Luminar for £28m in June 2005.