The boards of Stonegate and Revolution have announced that they have reached agreement on the terms of the recommended cash offer by the former for the latter.
The agreed offer values Revolution at c£101.5m.
Under the terms of the offer, Revolution shareholders shall be entitled to receive 203p in cash for each Revolution share held, representing a premium of approximately 62.4% to the closing price per Revolution share of 125 pence on 28 July 2017 (being the last business day prior to the commencement of the offer period).
Revolution’s directors said they considered the terms of the offer to be in the best interests of Revolution shareholders as a whole.
A completed deal will see Stonegate add a further 68 bars to its c690-strong estate.
Last week, The Deltic Group made public its rejected offer to merge with Revolution to create a “powerhouse” late-night operator. Deltic said it made the approach public to highlight options to Revolution’s shareholders. Revolution determined that it did not wish to engage in discussions with Deltic.
Keith Edelman, non-executive chairman of Revolution, 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.”
Ian Payne, chairman of Stonegate, 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.”
