Deal Provides National Cinema Chain With Around £15m Of Growth Capital

Specialist lawyers at Irwin Mitchell have played a key role in a major leisure sector deal which sees cinema business, The Light, being acquired by hospitality entrepreneur Luke Johnson and Risk Capital Partners (RCP), along with a co-investment from Melcorpo, cinema and leisure investors.

The Light currently operates 13 cinema and leisure venues across the UK, bringing both state-of-the-art cinema and entertainment spaces, including bowling alleys, mini golf and climbing walls, alongside a high-quality food and drink offering.

The deal, which fully recapitalises the business, is supported by a large new banking facility, enabling the business to invest over £15m over the next couple of years with the aim of doubling its size.

Adam Kaucher, Corporate partner at Irwin Mitchell, led the team which included Richard Collis and Kieran Shields (Corporate), and Nick Jennings (Banking).

Expert Opinion

“We are thrilled to have advised Risk Capital Partners on this significant investment. The Light’s innovative approach to cinema and leisure is truly transformative, and we are excited to see how this new phase of growth will unfold." Adam Kaucher, Corporate partner at Irwin Mitchell

Luke Johnson said: “I have spent 40 years building businesses in the leisure and hospitality sectors, ranging from Pizza Express to Gail’s. We think the combination of cinema together with competitive socialising is a compelling offer for both consumers and landlords and believe this disruption provides opportunities. The Light model offers a long-term, exciting solution to the challenges facing high street and existing cinema locations rather than short term fixes.  Risk Capital Partners is thrilled to be part of the next phase of The Light’s journey, harnessing the power of cinema to bring their game-changing offer to more places across the UK”.   

James Morris, CEO of The Light said: “I am delighted Luke and Brian have chosen to invest in The Light which allows us to release our exciting plans for the business. Our talented team have worked hard over the last few years to develop a commercially robust model which protects cinema, re-imagines entertainment and creates unique spaces. We strive to offer the best quality, value and experience, with each venue tailored to meet the needs of the local market.  Our unique offer, strong covenant and diversified model allows to re-purpose space and strengthens the commercial deals for cinemas.  We expect to announce our largest project to date which will re-purpose an old department store and deliver a strong cinema offer in the coming weeks.”

RCP was founded by Luke Johnson and colleagues in 2001, and specialises in providing development capital and active involvement in UK consumer businesses, especially hospitality and leisure. Luke and RCP have backed many successful ventures, including Gail’s, Neilson Active Holidays, Giraffe Restaurants, Strada, PizzaExpress, Laine’s Pubs, Genuine Dining, and most recently Simpson Travel in May this year.