Nightcap, the hospitality group formed by ex-Dragon's Den investor Sarah Willingham and Michael Toxvaerd, has secured its second acquisition with an agreement to buy Adventure Bar Group.
The deal will see Nightcap work with Adventure Bar Group founders Thomas Kidd and Tobias Jackson to grow the nine-site business to up to 40 sites in key cities across the UK. The group's portfolio includes London bars Bar Elba, Blame Gloria (pictured) and Tonight Josephine.
The Adventure Bar Group also recently expanded outside of the capital, opening outdoor bar, food and entertainment venue Luna Springs in Birmingham, with a second venue in the city opening under its Tonight Josephine brand later this month. Its Jimi Loves Gloria in Soho and the Lost Alhambra in Leicester Square sites will not form part of the transaction.
Willingham, chief executive of Nightcap, said: "We are thrilled to have secured our second acquisition and to have the opportunity to back such an exciting business and two very talented operators in Tom and Toby. They have built a great company and team, and have a very special business, and we're really excited to be working with them. We look forward to supporting them as they continue to grow during a time where the opportunity to acquire first-class sites at attractive rates is unmatched by anything I have seen during my 25 years in hospitality.
"For Nightcap this acquisition expands the opportunity to take on different types of properties, particularly with the Bar Elba and Luna Springs concepts trading as large outdoor venues, benefitting significantly when trade is restricted indoors and during the summer period.
"In addition, this acquisition will provide Nightcap with opportunities for purchasing synergies across the enlarged group and allow us to benefit from bringing new areas of excellence onboard, and I could not be more delighted to welcome Adventure Bar Group to the Nightcap family."
Kidd, chief executive of Adventure Bar Group, said: "We are delighted to be working with Sarah, Michael, Toby [Rolph, Nightcap chief financial officer] and the team at Nightcap. We have been looking at growth funding options for some time and this is the perfect outcome for us; the experience and knowledge of the senior Nightcap team will be a huge asset to the business as we look to scale and to share our brands like Tonight Josephine with more people around the UK."
Nightcap will be taking over Adventure Bar Group's bank debt of £4.3m, of which a minimum of £1.3m will be paid off on completion. It is also seeking to raise approximately £4m through the placing of new shares to fund the UK roll-out of the Adventure Group's brands.
Nightcap bought the 10-strong London Cocktail Club business in January, of which Willingham was a co-founder.