The acquisition will significantly increase LVHM’s presence in the luxury hotel world.
Luxury group, Louis Vuitton Moët Hennessy (LVMH), this week finalised an agreement to acquire upscale hospitality group Belmond, which owns and operates 46 luxury hotels, restaurants, train and river cruise properties.
LVMH is to acquire Belmond for US$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 past 12 months (ending in September 2018), Belmond recorded total revenues of $572 million and adjusted EBITDA of $140 million.
The transaction is expected to be complete in the first half of 2019, subject to the approval of Belmond’s shareholders and clearance by the relevant competition authorities.
Established more than 40 years ago with the acquisition of Hotel Cipriani in Venice, Belmond owns and operates a global collection of hotel and luxury travel adventures, including the famed Orient Express.
Belmond president and CEO, Roeland Vos, says: “The announcement is the result of the strong execution of our strategic vision that builds on our pioneering legacy and is an exciting development for all stakeholders, including our employees. We are confident that, as part of LVMH’s world-class family of brands, Belmond’s ability to deliver timeless, one-of-a-kind luxury experiences will reach new levels.”
LVHM chairman and CEO of LVMH, Bernard Arnault, adds: “Belmond delivers unique experiences to discerning travellers 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.”
Main image: Belmond Copacabana Place