Glasgow-based firm behind Paradise Island Adventure Golf chain is sold in £10.5m deal

Glasgow-based firm behind Paradise Island Adventure Golf chain is sold in £10.5m deal

Lethington Leisure Ltd was established in 2005 by Edward and Joshua Dantzic with the launch of the first outlet at Soar intu in Braehead

The company has since added five more mini-golf sites in leisure and retail outlets in Livingston, Sheffield, Cheshire Oaks, Derby and Manchester.

Two further sites are also reported to have also been contracted, though no further details are provided.

In the 2017 year to March, Paradise Island Adventure Golf generated revenues of £3.49 million and adjusted earnings before interest, tax and writedowns of £1.21 million.

The Brighton Pier Group, formerly the Electric Bar Group, owns and trades Brighton Palace Pier together with 14 premium bars in large towns and cities across the UK.

Leisure industry tycoon Luke Johnson, who built the Pizza Express chain in the 1990s, invested £1.5 million in the Electric Bar Group in 2015 in exchange for an 18.5 per cent stake.

In a stock market announcement on Tuesday, The Brighton Pier Group said it would part-fund the acquisition by raising up to £3 million from shareholders from a new placing, with the balance being funded through an extension of the group’s existing banking facilities with Barclays Bank Plc.

A further £0.6 million of consideration shares will go to “certain management selling shareholders” of Lethington Leisure and a £1 million in cash is deferred for one year by way of a loan note to the remaining shareholders in Lethington Leisure.

A further £100,000 is payable upon Lethington Leisure meeting key trading targets.

In a later update on Tuesday, The Brighton Pier Group said it conditionally placed 3,157,895 Placing Shares at 95p with its broker to raise “approximately £3 million before expenses”, with the shares expected to be admitted to the junior AIM market on 8 December.

On completion of the sale, pencilled for 8 December, Joshua Dantzic will continue as managing director and Edward Dantzic will be appointed as an independent non-executive director of Lethington Leisure.

The Brighton Pier Group said: “Paradise Island Adventure Golf represents a profitable and high quality acquisition in-line with the Group’s stated strategy of selectively acquiring leisure and entertainment assets in the UK.”

Luke Johnson, executive chairman of The Brighton Pier Group, said: “It is part of The Brighton Pier Group’s strategy to acquire growing experiential leisure and entertainment destinations.

“Paradise Island Adventure Golf operates in the growing social competition leisure sector in UK.

“Such facilities are known drivers of footfall as retail and leisure centres look to provide affordable entertainment for families and friends, which complement their retail and food offerings.

“We are excited by the opportunity to bring Paradise Island Adventure Golf into the group and will now turn our attention to expanding its footprint across the UK, having already identified a number of potential additional locations.”

Lethington Leisure chairman Edward Dantzic added: “We look forward to working with the Brighton Pier Group to capitalise on the great potential of Paradise Island.”

Macdonald Henderson advised Lethington Leisure on the sale alongside LBG Corporate Finance, Winckworth Sherwood and Martin Aitken & Co.

Source: insider.co.uk

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