REVOLUTION Bars Group has revealed it has opened talks to acquire four pubs in Edinburgh for £16 million.
But the high street operator declined to disclose the identity of the outlets and warned the outcome of the EU referendum could stymie the deal.
The proposed deal would significantly boost Revolution’s Scots business, which has three Revolution outlets, in Glasgow, Aberdeen and Edinburgh. The company, which listed on the London Stock Exchange last year, currently has 62 outlets across the UK. These include nine outlets trading under its Revolucion de Cuba brand in towns and cities in England and Wales.
A spokesman for Revolution said the company “can’t disclose the identity” of the bars. However, the firm did note that the “target assets” reported aggregate earnings before interest, tax, depreciation and amortisation of £3.3m in the year ending April 26.
Revolution said it expects the proposed acquisition to be “significantly earnings-enhancing for the group’s financial year ending June 30, 2017”, adding that it would add another brand to its portfolio “which the directors believe to be capable of being rolled out to other sites”.
The company proposes to fund the deal via new debt, a “relatively small” placing of new ordinary shares for cash and by issuing new ordinary shares to the vendors. But it warned the victory for the Leave campaign in Thursday’s referendum may block the deal. Revolution said: “Discussions are ongoing and, particularly in light of the results of the EU referendum, may or may not result in any transaction, whether as described above or at all, being agreed.”
Shares in Revolution Bars Group closed down 11.5p, or 6.3 per cent, at 172p.
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