LVMH to purchase Belmond Luxury Hotel Group for $ 3.2 billion

A woman with a Louis Vuitton branded shopping cart looks towards the entrance to a branch store of LVMH Moet Hennessy Louis Vuitton in Vienna, Austria, October 4, 2018. REUTERS / Lisi Niesner

PARIS (Reuters) – French Luxury Louis Vuitton Should Hennessy LVMN.PA have agreed to buy the luxury hotel Belmond ( BEL.N ) in an agreement that appreciates the company of 3.2 billion dollars.

LVMH said it would pay $ 25 per Belmond share, a 40 percent premium over Thursday's closing price.

The operation, which is expected to close in the first half of 2019, values ​​Belmonds equity of $ 2.6 billion, and the Group, including debt, of $ 3.2 billion.

Belmonds' heritage, its innovative services, its excellence in implementation and entrepreneurship resonate well with the values ​​of the (LVMH) group and complement our own Cheval Blanc maisonettes and activities for Bvlgari hotels, "LVMH's Managing Director and Chairman Bernard Arnault said in a statement.

LVMH, which owns fashion labels, prestigious beverage brands and iconic jewelry makers, is relatively small in the luxury hotel sector, where the assets include the Cheval Blanc hotel in the luxurious resort of Courchevel in the Alps.

Belmond owns, owns or manages 46 luxury hotels, restaurants, trains and river cruises. Among the most iconic properties, the group operates the only hotel in the Machu Picchu citadel of southern Peru.

The company recorded $ 140 million in revenues before interest, taxes, depreciation and amortization of $ 572 million in revenue for the 12-month period ending 30 September.

Reporting by Inti Landauro; Editing Leigh Thomas / Keith Weir

Our Standards: Thomson Reuters Trust Principles.

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