LVMH Seals $2.6 Billion Deal for Hotel Operator Belmond -- Update
14 Diciembre 2018 - 2:10AM
Noticias Dow Jones
By Craig Karmin
French luxury-goods company LVMH Moët Hennessy Louis Vuitton SE
said Friday it has agreed to acquire Belmond Ltd., a London-based
owner and operator of high-end hotels around the world.
LVMH agreed to pay $25 a share in cash for Belmond, a
transaction that values the company's equity at around $2.6
billion. That represents a premium of more than $7 to where Belmond
shares closed Thursday on the New York Stock Exchange.
Belmond's enterprise value, including debt, is about $3.2
billion.
The Paris-based luxury-goods company, which owns fashion brands
like Fendi and Louis Vuitton and champagne maker Dom Pérignon, is a
surprise winner in a highly competitive sale process. For weeks,
Middle Eastern and Asian government funds, big hotel brands and
private-equity firms have dominated the bidding, say people
familiar with the process.
The French company's shares closed at EUR255.85, up EUR1.50, or
0.6%, on Thursday in Paris.
The deal is the latest sign that luxury travel is booming after
an extended downturn, when many leisure travelers and businesses
shunned paying up for high-end accommodations.
The hospitality company has full or partial stakes in virtually
all of its 36 hotels, making it one of the last hotel operators to
own most of the properties its manages. The hotels include Cipriani
in Venice, the Grand Hotel Europe in St. Petersburg, Russia, and
the Copacabana in Rio de Janeiro.
After years of spurning all takeover offers, the Belmond board
announced in August that it had initiated a strategic review that
effectively put the company up for sale. Belmond's share price has
soared more than 50% since the announcement.
Founded as Orient-Express Hotels, the business became a
stand-alone company in 2000 and changed its name to Belmond in
2014. It also offers luxury train rides, including the Venice
Simplon-Orient-Express, river cruises in Europe and Asia, and owns
the venerable "21" Club restaurant in New York City.
For LVMH, the acquisition of Belmond will expand its reach in
the luxury world and greatly increase its position in the
hospitality business. The luxury-goods company has the Bulgari
hotel brand and Cheval Blanc, a collection of luxury
properties.
Write to Craig Karmin at craig.karmin@wsj.com
(END) Dow Jones Newswires
December 14, 2018 02:55 ET (07:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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