LVMH will buy the luxury hotel, restaurant, train and river cruise operator for $25 per Class A share in cash – representing an equity value of $2.6 billion and an enterprise value of $3.2 billion.
In the 12 months ended September 30, Belmond recorded total revenues of $572 million and adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) 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 competition authorities.
Belmond – which operates in 24 countries – counts properties including Hotel Cipriani in Venice, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, Grand Hotel Europe in St. Petersburg and Cap Juluca in Anguilla among its portfolio.
Through this acquisition, LVMH plans to significantly increase its presence in the “ultimate luxury hotel world”.
Roland Hernandez, chairman of the board of directors of Belmond, 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 of LVMH, added: “Belmond’s heritage, innovative services, excellence in execution and entrepreneurship resonates well with the values of the group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities.”
