Revolution Bars Group, which operates bars and gastropubs mainly under the Revolution, Revolución de Cuba and Peach Pubs brands, confirmed it had held an “exploratory meeting” with Nightcap with the focus on the potential purchase of all or part of the business.
Nightcap gave a response later on Thursday 2 May after initially providing no comment.
Nightcap, which operates about 50 bars under brands including The Cocktail Club, Barrio Familia, the Adventure Bar Group and The Piano Works brands, said it had been following events at Revolution over the past few week.
Assessing options
The business said: “In response to the announcement by Revolution Bars, Nightcap confirms that it is assessing a number of possible options, which, among other things, could include the acquisition of certain sites of Revolution Bars; the acquisition of certain operating subsidiaries of Revolution Bars; a possible share for share offer for the entire issued and to be issued share capital of Revolution Bars; the acquisition of certain brands of Revolution Bars; or the acquisition of certain assets of Revolution Bars.”
It added its evaluation of each option was at a “relatively early stage”.
Nightcap continued: “The board believes assessing the options is in line with the company’s ambition to create the UK’s leading bar group by consolidating the drinks-led premium bar segment of the UK hospitality sector through strategic acquisitions.
“The board considers that certain brands of Revolution Bars could be an excellent addition to the company’s existing portfolio of brands.”
No to formal sale process
It added that although Revolution is currently in a formal sale process, Nightcap has decided not to participate in this formal sale process at this time and that the statement issued is not an announcement of a firm intention by Nightcap to make an offer.
Nightcap said its strategy is to become the leading bar group in the UK, which includes making selective acquisitions within the drinks-led premium bar segment of the UK hospitality sector.
It recently acquired The Piano Works brands and its shares were listed for trading on AIM in January 2021.
Revolution Bars Group operates 58 bars and 22 pubs and, based on unaudited interim results for the 26 weeks ended 30 December 2023, it had generated revenue of £82.3m and profit before tax of approximately £3.1m.
Revolution announced a restructuring plan in a bid to raise £12.5m earlier this month and more recently revealed how the plan would be put into action.
