French luxury goods company LVMH – which owns iconic brands including Moët & Chandon and Louis Vuitton – is acquiring Belmond in a multi-billion-dollar deal expected to complete in 1H2019.
The deal is for US$25.00 per Class A share in cash, representing an equity value of US$2.6 billion and an enterprise value of US$3.2 billion.
In the 12 months ended September 30, 2018, Belmond recorded total revenues of US$572 million and adjusted EBITDA of US$140 million.
Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, Belmond owns and operates a collection of hotel and luxury travel adventures in 24 countries.
Its portfolio comprises 46 hotel, rail and river cruise experiences, including Hotel Cipriani in Venice, Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, 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.
Belmond also operates trains such as the Venice Simplon-Orient-Express and Belmond Royal Scotsman as well as cruises including Belmond Afloat in France fleet and Belmond Road to Mandalay.
LVMH expects to significantly increase its presence in the luxury hotel world through this acquisition.
Commenting on the deal, Bernard Arnault, chairman and CEO of LVMH, said Belmond has strengths in its “exceptional assets”, heritage, innovative services, as well as complementary offerings to LVMH’s own Cheval Blanc maisons and the Bvlgari hotels activities.
Roland Hernandez, chairman of Belmond’s board of directors, said the board came to the conclusion that the transaction provides “compelling and certain value for shareholders” following a strategic review that attracted interest from real estate and lodging companies, sovereign wealth institutions and other financial buyers around the world.