BSR
BSR
  • Home
  • Distressed Businesses
    • All Distressed Businessess
    • Administrations
    • Liquidations
    • Winding Up
    • Insolvency Advice  New
  • Buy a Business
    • All Businesses for Sale
    • Find a Business for Sale
    • Raising Business Finance
    • Buyer Acquisition Service   New
    • Escrow Service   New
  • Sell a Business
    • Sell Your Business
    • Seller Accounts
    • Need Help Selling?
    • Help With Finance New
    • Business Valuation
    • Business Wanted Adverts
  • Insights & News
    • View All News
    • View All Insights
  • Off-market
    • Source deals
  • Log In
  • Join Now
Join now
11111111

Home / News / Nightclub operator Deltic acquired by Rekom in cut-price deal

Nightclub operator Deltic acquired by Rekom in cut-price deal

Fri, 08 Jan 2021 | BUSINESS SALE

Nightclub operator Deltic acquired by Rekom in cut-price deal

UK nightclub operator Deltic has been acquired by Scandinavian nightlife group Rekom in a £10 million deal, around one-eighth of the firm’s pre-COVID-19 value, after the pandemic forced it into administration.

Deltic, which operates popular student-oriented nightclubs including Atik, Eden and Pryzm, revealed in October that it was seeking a buyer after months of closure lead to huge cashflow problems. A CVA was ruled to be an inviable option.

A report from administrators BDO revealed that Deltic had close to £900,000 in cash but had run up rent arrears of around £9.4 million and owed £7.7 million in taxes. With all of its nightclubs closed due to the pandemic for over six months, the group was spending around £1 million a month.

BDO’s report revealed that the deal went through last month and saw Rekom acquire 42 of its 52 UK nightclubs. Deltic CEO Peter Marks commented that it had reached a situation “where we had a business that was worth £80m that was sold for £10m.”

Rekom was among four bidders, including Deltic’s existing shareholders, private equity firm Greybull Capital and fellow nightlife operator Shoreditch Bar Group. Rekom emerged as the preferred bidder after outbidding Greybull, who had made a £10 million offer for 22 of Deltic’s 52 sites.

Following the acquisition, Deltic will merge with the wider Rekom Group, with Marks remaining in the role of CEO for the new UK business. Rekom, which operates over 130 clubs across Scandinavia, will have to fund around £700,000 per month in losses while nightclubs remain closed.

Peter Marks said that post-acquisition the group would look to expand through acquisitions with the financial backing of Rekom’s largest shareholder, Danish private equity firm CATACAP.

Commenting on the acquisition, Marks said: “With Rekom we get an owner that knows the industry, who will reopen most of the venues we have had to close down and are ready to invest in developing our position in the UK.”

Rekom CEO Adam Falbert said that the company had been “looking at the UK market for the past few years as part of our ambition to become one of the largest pan-European nightlife groups”.

“When the opportunity came to take over a strong and well-run group like Deltic,” Falbert added, “it was a question of finding the right set-up to make it happen.”

According to Deltic’s most recent available accounts, to the year ending February 23 2019, the company recorded EBITDA of £11.1 million, down 30 per cent from £14.4 million the year prior, on turnover of £101.8 million, down from £106.4 million a year earlier.


Find businesses for sale here.

If you are looking for an exit, we can help!


Share this article



Latest Businesses for Sale

Hair & Beauty Salon
Kent, South East, UK

The well established business opportunity originally opened its door over 25 years ago, and has been under the current ownership. During that time, they built up an excellent reputation and loyal customer base within the local area.

Asking Price: Offers Invited
Turnover: £340,000

LEASEHOLD


Campervan & Motorhome Conversion Solutions
UK Wide

An opportunity has arisen to acquire a reputable and successful business operating at the forefront of the leisure market. Supplies an extensive range of products for trade and DIY vehicle conversions, including roofs, fittings, wood, and complementa...

Asking Price: Offers Invited
Turnover: £8,000,000

LEASEHOLD


Specialist Skin & Beauty Clinic
South East, UK

Due to the affluent location, an excellent local reputation and diverse treatment offering, the company has shown resilience to wider economic troubles and has increased turnover consistently – showing highly profitable and optimistic opportunities f...

Asking Price: Offers Invited
Turnover: £349,163

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
27
 
Jan
 

Administrators to sell assets as office furniture maker collapses | ADMINISTRATION

Bluespot Furniture, a West Yorkshire-based furniture manufac...

 
26
 
Jan
 

UK M&A down 16 per cent in 2022, but sentiment remains optimistic | BUSINESS NEWS

New analysis from PwC has revealed that UK M&A activity decl...

 
26
 
Jan
 

Private equity-backed law firm targeting further M&A in 2023 | BUSINESS NEWS

Stowe Family Law, a Leeds-headquartered specialist family la...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
02
 
Nov
 

Nightclub business up for sale following Covid-19 closure | BUSINESS SALE

Deltic Group, the UK's largest nightclub group, has put...

 
24
 
Aug
 

Frasers Group acquires certain DW Sports assets for initial £37m | BUSINESS SALE

Frasers Group has acquired some of DW Sports’ gyms and...

 
17
 
Aug
 

Frasers Group bids for DW Sports | BUSINESS NEWS

Mike Ashley’s Frasers Group has reportedly bid in exce...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news

logo
Our Services Distressed Businesses
  • Businesses for Sale
  • Distressed Companies
  • List a Business
  • Help with Finance
  • Buyer Acquisition Service
  • Small Businesses for Sale
Company Buy a Business
  • About BSR
  • Insights
  • News
  • FAQs
  • Reviews
Get In Touch
020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm
About BSR
Business Sale Report is the UK's leading
independent business for sale & distressed business listing service.
Established in 1995, BSR offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.
Subscribe

Subscribe to our newsletter to receive news about the latest businesses for sale.

  • Terms
  • Privacy
  • linkedin
  • facebook
  • twitter
© 1995-2023. Business Sale Report Ltd. All rights reserved. www.business-sale.com.