The world largest luxury Group LVMH (LVMH) announced on Friday that it has reached an agreement to buy the Belmond Luxury Hotel Group (BEL), listed in the New York Stock Exchange. The offer is 25 dollars per class A share. The equity value is 2,6 billion dollars and enteprise value 3,2 billion dollars.
According to the French luxury group LVMH the acquisition complements the other grups´s activities, like the Bvlgari and Cheval Blanc operations. Belmond Group is a luxury hotel and travel operator with 33 hotels wordwide and has several cruises and trains, mainly in Europe.
The company started its business about 40 years ago in Venice, when the Hotel Cipriani was opened. The group´s 12 months revenue was 572 million dollars and ebitda 140 million dollars at the end of September. One of the famous restaurants, Club 21 in New York, is also part of the chain.
The transaction is being finalised after the approval of the Belmond shareholders during the first quarter of 2019 and after the anti-trust clearance in mid-2019.
LVMH´s shares closed down by 1,43 % to 252,20 euros in Paris Euronext and the Belmond´s shares jumped by 39,83 % to 24,68 dollars in New York on Friday.