From fashion and champagne (but also publishing) to ultra-luxury hotels, it's a short step. Very short. The colossus proves it LVMH which acquired Belmond for 2,6 billion dollars. The aim is precisely to strengthen the presence of the group led by Bernard Arnault in the hotel industry, starting from the top.
Belmond owns 46 luxury hotels in the world, including Italy with the Cipriani of Venice, the Splendido of Portofino and the Caruso of Amalfi, as well as facilities in Tuscany and Taormina (Sicily). The legendary Venice Simplon-Orient-Express train and river cruise ships also belong to Belmond. Other well-known hotels scattered across 24 countries include the Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat'Saisons in Oxfordshire, Grand Hotel Europe in St. Petersburg and Cap Juluca on the Caribbean island of Anguilla.
Lvmh to acquire Belmond for $25 in cash for each Class A share, for a total share value of 2,6 billion and an enterprise value of 3,2 billion. The offer represents a seven-dollar premium on the stock's closing price on Thursday, December 13 on the stock market. Among other things, the French giant has beaten rivals of the caliber of KSL Capital Partners, Blackstone, KKR & Co. and Ashkenazy Acquisition.
In terms of accounts, as of September 30, 2018, Belmond had revenues of $572 million and an adjusted ebitda of $140 million.
The operation should close in the first half of next year. For Bernard Arnault, president and CEO of Lvmh, this acquisition “will increase significantly the presence of Lvmh in high-end hospitality”.
As happens after every major acquisition, the Lvmh stock travels in the red on the Paris Stock Exchange, losing 1,39% to 252,3 euros.
