Nightcap has reported that its Adventure Bar Group acquisition has met financial targets “significantly faster” than it anticipated, releasing a further 7.1m shares to the vendors.
When the late-night group acquired the Adventure Bar Group and its brands in May 2021, the vendors received an initial tranche of 4,761,905 new ordinary shares of 1p each in the company.
A further 7,142,856 in ‘earn out consideration shares’ was committed, dependent on the level of EBITDA growth over a two-year period.
Adventure Bar Group has now achieved the financial milestones required in order for all of the earn out shares to be issued to the vendors, business founders Tom Kidd, Tobias Jackson and Bryan Lloyd
The board anticipates the shares will be issued on 29 June 2022 and admitted to trading on AIM in early July 2022.
In March and April 2022, the Adventure Bar Group acquired three new sites for its bars in Cardiff, Liverpool and Bristol, with several further new Adventure Bar Group site acquisitions being planned for announcement later this calendar year.
Tom Kidd, managing director of the Adventure Bar Group, commented: “Like most businesses in hospitality Covid hit us hard, but it has been incredible to see how much our customers have enjoyed our venues since the reopening last year.
“Working with Nightcap has allowed us to focus on creating great experiences for customers across our existing sites and start the roll-out of our amazing brands, which we always believed had nationwide potential.”
“I would like to thank Nightcap for recognizing our strong performance early, which has freed us up to focus on securing the best sites across the country for our continued roll-out.”
Sarah Willingham, chief executive of Nightcap, added: “I am delighted to congratulate Tom Kidd, Tobias Jackson and Bryan Lloyd on achieving the Adventure Bar Group earn out milestones well ahead of time. It is a phenomenal achievement and a testament to the quality of their leadership, the exceptional team that they have put in place and the brands they have built and continued to strengthen since the acquisition by Nightcap last year.
“They have managed to realise this whilst still setting themselves up for an aggressive expansion this year, by filling the pipeline with new sites, expanding their team, refining their offer and even rebranding two of their sites.
“Tonight Josephine in Cardiff, which opened its doors just four weeks ago, has hit the ground running, trading profitably from the very first week since opening, further strengthening our commitment to expand this popular brand across the UK.”
