French luxury group LVMH Moët Hennessy Louis Vuitton (LVMHF.PK,LVMUY.PK) has agreed to acquire Belmond Ltd. (BEL) for an equity value of $2.6 billion, the companies said Friday. Shares of Belmond are gaining 40 percent in the regular trading session.
Belmond is a London-based owner and operator of 46 luxury hotel, restaurant, train and river cruise properties. The company also operates '21' Club, one of New York's most storied restaurants.
LVMH, the owner of iconic fashion brands like Louis Vuitton, Christian Dior and Dom Perignon, will pay $25.00 per Class A share in cash, representing a premium of 41.6 percent over Thursday's closing stock price of $17.65 on the New York Stock Exchange. The transaction has an enterprise value of $3.2 billion.
The transaction, subject to the approval of Belmond's shareholders, is expected to be completed in the first half of 2019.
In the twelve months ended September 30, 2018, Belmond recorded total revenues of $572 million and adjusted earnings before interest, taxes, depreciation and amortization or EBITDA of $140 million.
Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, Belmond owns and operates a global collection of hotel and luxury travel adventures around the world. The company operates in 24 countries with its distinctive portfolio of 46 hotel, rail and river cruise experiences.
Belmond's iconic properties include hotels like 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.
Legendary trains, such as the Venice Simplon-Orient-Express and Belmond Royal Scotsman as well as luxury cruises such as Belmond Afloat in France fleet and Belmond Road to Mandalay, are also part of Belmond's portfolio.
LVMH noted that the acquisition will significantly increase its presence in the ultimate luxury hotel world. According to the company, Belmond is an ideal complement to the high-end Cheval Blanc maisons and the Bulgari hotels.
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