The acquisition adds 13 new sites to Ultimate’s portfolio, taking the total number under its ownership to more than 50.
The deal was partially funded by Ultimate’s existing resources, and supplemented by debt. The Living Room will continue to be led by managing director Danny Fox, supported by the business’ existing operations, marketing and training teams.
The acquired business was sold by Living Ventures, which is part-owned by The Restaurant Group. The vendor will use the proceeds of the deal to repay a portion of its outstanding debts, with the balance of the cash going to its shareholders. It continues to operate its Blackhouse Grill and Est Est Est restaurant brands.
This is Ultimate’s second deal this year. Last month the Newcastle-based company acquired Bel and the Dragon, a pub restaurant business with four outlets, from Gourmet Holdings for £8.75 million. Other brands in its portfolio include Prohibition, Chase and BluBambu.
The Living Room opened in 1999 and now has outlets across England and Scotland. In the year to April 2007, it reported pre-tax profits of £6 million from sales of £30 million.
