(Adds acquisition details, Restaurant Group trading update)
LONDON (Thomson Financial) - Ultimate Leisure Group PLC said it has bought
Living Ventures Ltd, the restaurant and bar business that owns the Living Room
brand, for 28 mln stg in cash, to develop the food side of its business.
The company said it expects the acquisition to add to its earnings in the
first year of ownership, and that it plans to more than double the number of
Living Room sites in the next five years.
Living Room had sales of 29.2 mln stg in the year to March 31, 2007.
Living Ventures, an associate company of the Restaurant Group PLC, will be
renamed the Living Room Ltd.
The acquisition will be funded from Ultimate Leisure's current financial
resources and debt facilities.
Restaurant Group said it expects to receive a total of 7.8 mln stg in cash
from the transaction, and that Living Ventures has used the proceeds from the
acquisition to repay outstanding loan note interest and preference debt due to
the Restaurant Group, and reduce bank debt.
The Blackhouse Grill and Est Est Est restaurants will be retained by the
Restaurant Group, Tim Bacon, Jeremy Roberts and other shareholders as defined by
the restructuring of Living Ventures' assets immediately before the acquisition.
Restaurant Group also said it had continued strong trading since its AGM on
May 16 and like-for-like sales for the 24 weeks to June 17 are 5 pct ahead of
the same period last year.
TFN.newsdesk@thomson.com
faj/jfr
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