Revolution takeover talks heat up as rivals vie for bars

BRITAIN’S BIGGEST nightclub operator has turned up the volume in its bid to merge with rival Revolution Bars after it outlined its plans to create a bar giant with annual sales of more than £270m.

Deltic is proposing an all-paper merger that would see embattled Revolution own 65 per cent of the combined business and Deltic the remaining 35 per cent.

The proposed tie-up sees Deltic go head-to-head with Slug And Lettuce owner Stonegate, which struck an agreement in August to acquire Revolution Bars in a £101.5m deal.

Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, has already rebuffed an approach from Deltic over “significant concerns regarding both value and deliverability”.

But Deltic – whose estate spans 57 nightclubs – said it was “disappointed” by Revolution’s “instant dismissal” of the proposal and wanted to take the merger plan straight to shareholders.

It said: “Deltic has determined that the merger proposal is best shared directly with Revolution shareholders as it is they who ultimately need to determine the future of Revolution rather than its directors.”

The group has now given Revolution access to its books.

“Deltic believes the merger proposal represents a compelling value creation opportunity for Revolution and its shareholders and would welcome the opportunity to engage with the board of Revolution on a constructive basis,” it added.

Deltic still has to put forward a firm offer or walk away by 5pm on October 10 under City takeover rules.

The latest twist in the takeover saga comes after Revolution revealed earlier this week that annual profits fell by 29 per cent to £3.6m and cautioned over cooling autumn sales.