Crucible Acquisitions, a consortium of two private equity groups, will pay £34.1 million for the company.

The terms of the deal may include a sale and leaseback of Rileys’ property for £28 million, taking the total consideration to £62.1 million.

The consortium comprises Greenhill Capital Partners, the private equity arm of investment bank Greenhill, and North Atlantic Value, a manager of investment trusts and hedge funds.

The seller was AIM-listed Georgica, a company operating pool and snooker clubs and ten-pin bowling centres. Georgica had warned of a potential slowdown in profits following the nationwide smoking ban which came into force last month.

Rileys’ management will remain with the firm. Chief investment officer at Greenhill, Brian Phillips, says that both acquisitive and organic growth is planned.

Both firms in the consortium operated out of their London offices. Greenhill is headquartered in New York, and North Atlantic Value in London.

Last year Rileys generated revenues of £58.2 million, with post-tax profits of £9.5 million.