Nightcap PLC (AIM:NGHT) said it acquired Barrio Familia Ltd for £4.93mln and now expects its results for the year to 3 July 2022 to come in “significantly ahead” of market expectations.
The acquisition adds five bars to Nightcap’s business, comprising four Latin American-inspired, Tequila-led cocktail bars in popular areas of London which trade under the 'Barrio' brand as well as a high-end 60s themed members' cocktail bar which trades under the 'Disrepute' brand in London's Soho area.
Nightcap said the Barrio bar brand captures a growing demand for Latin-inspired, Margarita and Tequila focussed bars and has significant UK rollout potential.
The £4.93mln consideration comprises £3.62mln in cash and £1.3mln in the form of around 5.68mln new shares issued at 23 pence each.
Commenting on the acquisition, Nightcap chief executive officer Sarah Willingham said: “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.”
Nightcap said the Barrio Bar Group has traded well since the reopening of indoor hospitality on 17 May 2021, showing a 23% increase in sales in the 13 weeks to 26 September 2021 relative to the comparative period in 2019, when there were no COVID-19 restrictions in place.