Luke Johnson acquires cinema and entertainment operator The Light: Cinema and entertainment operator The Light has been acquired by serial sector investor Luke Johnson and Risk Capital Partners along with a co-investment from Melcorpo, cinema and leisure investors, for an undisclosed sum. The company said the deal, which fully recapitalises the business, is supported by a large new banking facility, enabling it to invest over £15m over the next couple of years with the aim of doubling its size. The Light, which was previously backed by Connection Capital, currently operates 13 cinema and leisure venues in local communities across the UK. The company said it has developed a unique entertainment model which includes bowling, mini golf, interactive darts, climbing and karaoke in addition to its core cinema offering. It said it offers landlords an “attractive and sustainable alternative solution to under-performing locations rather than simply requiring rent reductions”. The company said: “The new management team has already proved the model at a number of locations and are now looking to build on this success with the new investment.” Propel revealed earlier this summer that the business was looking to raise investment to support its accelerated growth plan and recapitalise its balance sheet. It came as the company reported turnover increased to a record £33,121,056 for the year ending 27 July 2023 compared with £32,981,408 the previous year. The company made a pre-tax loss of £2,483,403 compared with a profit of £1,088,365 the year before. Johnson said: “I have spent 40 years building businesses in the leisure and hospitality sectors, ranging from PizzaExpress to Gail’s. We think the combination of cinema together with competitive socialising is a compelling offer for both consumers and landlords and believe the disruption facing the cinema industry 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, chief executive 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 us to re-purpose space and strengthens the commercial deals for cinemas. We expect to announce our largest project to date which will repurpose an old department store and deliver a strong cinema offer in the coming weeks. Achieving ambitious growth cannot be achieved without great people and a positive culture, a founding principle at The Light. We have so many amazing people in our business who share our vision and values and exceptional, talented leaders, who I am so proud we have been able to attract. I would also like to say thank you to Keith and John, the founders of The Light, for their contribution as without their foresight, knowledge and support, none of this would be possible.” Bernard Dale of Connection Capital, said: “The business has grown well during our period of investment, developing and launching the successful destination entertainment concept. Risk Capital’s investment will enable further UK sites to be opened and we are delighted to retain an interest in the business as this rolls-out.” A new report produced by Propel on the fast-growing experiential leisure sector was launched on 1 August. The report profiles the current shape of the experiential leisure market – including brands, estate size, trading type and geographical location and future trends. It provides a detailed list of UK experiential leisure companies including key staff and Companies House information. The report includes more than 180 companies, 3,500 sites and a 35,000-word report. The report is available for £595 plus VAT although Premium Club members can receive the report for £395 plus VAT. Email: kai.kirkman@propelinfo.com today to order a copy.