Lvmh buys Belmond, a company that controls the Cipriani Hotel in Venice and the legendary Orient Express Venezia-Simplon.
The French group, owner of the Louis Vuitton brand, announces today that it has concluded a definitive agreement, which provides a bid of $ 25 for each Belmond share listed in New York.
Altogether this is an equity value of 2.6 billion dollars in a transaction where Belmond’s enterprise value is 3.2 billion dollars.
The hospitality reality is the owner of 46 luxury hotels in 24 countries (among others, the Splendido hotel in Portofino, the Copacabana Palace in Rio de Janeiro and the Grand Hotel Europe in St. Petersburg) and is also active in catering , in train journeys, river cruises and safaris. The turnover of Belmond, in the 12 months to 30 September 2018, is of 572 million dollars, while the adjusted ebitda is of 140 million dollars.
Belmond’s activities are complementary to the properties of Lvmh in the sector, the Cheval Blanc chain and the Bvlgari hotels.
The closing of the transaction is expected in the first half of 2019.