Piper acquires stake in Loungers
Piper, the private equity group, which formerly backed Pitcher & Piano and Las Iguanas, has taken a significant minority stake in Loungers, the fast-growing cafe/bar restaurant group led by Alex Reilley.
Piper is to invest £16m into Loungers, which was founded in 2002 by Reilley, Jake Bishop and Dave Reid, valuing the 22-strong business at over £32m. Crispin Tweddell, founder of Piper, will become its chairman, while Reid will leave the business at the end of the year.
Loungers currently operates 19 sites under its Lounge format and three under its more female-orientated brand, Cosy Club.
The group, which expects to reach 28 sites by the end of 2012, plans to open a further 50 outlets over the next three to five years. Reilley believes there is potential to eventually grow an estate of 350 sites under the two formats.
The company, which appointed Nick Collins, former finance director at Capital Pub Company last November, will open its next site, the Modelo Lounge in Hove, later this month. The opening of the Verdo Lounge in Wylde Green, Birmingham, should follow in late-May.
It has also already secured a further two sites for its Cosy Club format in Cardiff and Salisbury.
Reilley, who collected the Rising Star Award at this year’s Retailers’ Retailer Award, said: “We see Piper as a great cultural fit for us and very much like the company’s desire to understand our brand and customers and the driving forces behind our success, as well as its obvious commitment to work with us as partners who can add significant value to our business. We are all now focused on scaling the business and ensuring we build an outstanding business and brand legend.”
The £16m Piper is investing into Loungers is the largest single investment it has made to date and the second from its £107m fund, Piper V. Last October, it took a significant minority stake in Be At One, the London-based 12-strong cocktail bar chain.
