LVMH (Louis Vuitton Moët Hennessy) has entered
into a definitive agreement to acquire Belmond, owners,
part-owners or managers of 46 luxury hotel, restaurant, train and
river cruise properties.
LVMH is to acquire Belmond for $25.00 per Class A share in cash.
This represents an equity value of $2.6 billion in a transaction
with an enterprise value of $3.2 billion. In the twelve months
ended 30 September 2018, Belmond recorded total revenues of $572
million and adjusted EBITDA of $140 million.
The transaction is
expected to complete in the first half of 2019 subject to the approval of Belmond's shareholders and clearance by the relevant
Established over 40 years ago with the
acquisition of Hotel Cipriani in Venice, Belmond’s iconic
properties include hotels such as Hotel Splendido in Portofino, Copacabana
Palace in Rio de Janeiro, Le Manoir aux Quat'Saisons in
Oxfordshire (pictured), Grand Hotel Europe in St. Petersburg, Maroma Resort &
Spa in Mexico, Hotel das Cataratas in the Iguassu National Park in
Brazil, and Cap Juluca in Anguilla.
Legendary trains, such as the
Venice Simplon-Orient-Express and Belmond Royal Scotsman and
exceptional cruises such as Belmond Afloat in France fleet and
Belmond Road to Mandalay, complete the portfolio.
Chairman of the Board of Directors of Belmond Ltd, said,
“Following a strategic review that attracted broad and deep
interest from a wide range of real estate and lodging companies,
sovereign wealth institutions and other financial buyers around
the world, the board has concluded that this transaction with LVMH
provides compelling and certain value for our shareholders as well
as an exciting path forward with a group that appreciates
Belmond’s irreplaceable assets and strong management team.”
Bernard Arnault, Chairman and Chief Executive Offer of LVMH,
added, “Belmond delivers unique experiences to discerning travelers and owns a number of exceptional assets in the most
desirable destinations. Its heritage, its innovative services, its
excellence in execution and its entrepreneurship resonates well
with the values of the Group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities. This
acquisition will significantly increase LVMH’s presence in the
ultimate hospitality world.”
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