LONDON, UK: Nightcap Plc (LON: NGHT) has acquired the entire issued share capital of Barrio Familia Ltd and its subsidiaries, a news release noted.
As a result of the Acquisition, the board of Nightcap expects that the Group’s results for the 53 weeks ending 3 July 2022 will be significantly ahead of current market expectations.
Through the acquisition, Nightcap has become the operator of an additional five bars, which comprise: i) four Latin American-inspired, Tequila-led, cocktail bars in popular areas of London which trade under the ‘Barrio’ brand; and ii) a high end ’60s themed members’ cocktail bar which trades under the ‘Disrepute’ brand in London’s Soho area (collectively the “Barrio Bar Group”).
The Board believes that the Barrio bar brand captures a growing demand for Latin-inspired, Margarita and Tequila focussed bars and has significant UK rollout potential, similar to Nightcap’s existing bar brands.
The consideration paid to the Vendors is £4.935 million and comprises: i) a net cash amount of £3,628,000; and ii) £1,307,000 which has been satisfied by the issue of 5,682,609 new ordinary shares of 1 p each in the Company at a price of 23 pence per share.
Sarah Willingham, Chief Executive Officer of Nightcap, commented: “I am absolutely delighted that Nightcap has acquired Barrio Familia, which includes Barrio’s four Latin American-inspired cocktail bars and the ’60s themed members’ cocktail bar, Disrepute.
“When Nightcap was founded, one of my goals was to acquire a bar group that has the potential to maximise on the winning combination of Margaritas and Tacos – a personal favourite of mine! Over the past year, Nightcap has closely observed the significant growth of the Tequila market with great interest, and we believe that this Acquisition has significant potential for UK-wide expansion.
“Nightcap has been fortunate enough to have had a strong first year, and we are so pleased to be heading towards the end of 2021 with another fantastic concept in our portfolio. As always, we would like to thank our stakeholders for their continued support, all our amazing staff, and our wonderful customers for continuing to bring their energy to Nightcap’s bars. We look forward to providing further updates regarding our plans for Barrio Familia!”
Following the acquisition of The Cocktail Club (formerly The London Cocktail Club) in January 2021 and the Adventure Bar Group in May 2021, the Board is pleased to announce the acquisition of the Barrio Bar Group, in line with Nightcap’s strategy of making selective acquisitions within the drinks-led premium bar segment of the UK hospitality sector.
The four Barrio bars bring a Latin American-inspired, Tequila-led, cocktail bar concept into the Group, representing a new dedicated customer offering for Nightcap. The Board believes that the four existing Barrio bar sites in popular areas of London demonstrate that this brand has significant nationwide roll out potential, similar to Nightcap’s existing bar brands.
The Board believes that, as a result of the Acquisition, the Group’s results for the 53 weeks ending 3 July 2022 will be significantly ahead of current market expectations and that the Acquisition will be earnings enhancing for Nightcap. The Board also believes that, in the medium term, there will be opportunities for synergies between the Barrio Bar Group and the Group’s existing bar brands, especially in relation to sales and marketing and opportunities for purchasing synergies across certain major alcohol lines.