Revolution Bars Group plc has announced that, further to the announcement made on 7 September 2018, discussions regarding a transaction involving a possible acquisition of The Deltic Group have been terminated.
Following a period of engagement and due diligence, Revolution's Board has concluded that a transaction with Deltic would not be in the best interests of the company's shareholders. Revolution will continue to focus on delivering the positively received strategy outlined in its preliminary results announcement made on 2 October 2018.
The Deltic Group stated it was disappointing that such talks, that were only ever at an early stage, were leaked and that the decision not to proceed comes as little surprise.
Deltic's Board still believes that there is a compelling financial case for a merger between the two companies but respects the decision of the Board of Revolution. Deltic remains a shareholder in Revolution Bars Group plc and will follow developments closely.
Deltic's Board also reiterated that Deltic is a well-run business with a strong financial performance over many years. The Revolution merger proposal was only one of several routes that the Deltic directors were exploring in order to take the company forward. It continues to believe the late night economy is a good investment and the doubling of profits over the last six years, with approximately the same number of venues, underpins that view.
Deltic will continue to seek profitable growth both through continued investment in the current business and through a number of possible strategic acquisitions.