Close Brothers Private Equity has lent its support to the £27.2 million management buyout out of CanDu Entertainment, from London-listed bar and nightclub operator Luminar.
Candu, Luminar’s hitherto non-core enterprise division, owns a total of 49 late night venues (comprising 29 clubs and 20 high street bars) and generated a £3 million operating profit last year from £45.6 million of sales. Having secured the financial support of both Close and Barclays Bank, incumbent chief executive Tim Roberts led the buyout team. He now finds himself at the helm of the UK’s second largest nightclub operator.
‘CanDu is a highly cash generative business [but] we believe we can improve a number of the existing sites through investment and focused management/marketing at a local level,’ Close Brothers’ Sean Dinnen reasons.