Deal is subject to regulatory approval, but should complete this year.
AccorHotels has signed an agreement with Mövenpick Holding and Kingdom Holding to acquire Mövenpick Hotels & Resorts, for a cash amount of €482 million.
Founded in 1973 in Switzerland, Mövenpick Hotels & Resorts operates in 27 countries with 84 hotels and more than 20,000 rooms, with a strong presence in Europe and the Middle East.
Mövenpick also plans to open 42 additional hotels by 2021, representing almost 11,000 rooms, focused on the Middle East, Africa and Asia-Pacific. The Group employs more than 16,000 people worldwide.
AccorHotels says the deal implies a 14.9X 2019e EBITDA multiple before synergies (including transaction costs), and less than 10X pro forma 2019e EBITDA after run rate synergies and committed development pipeline. It also says the transaction will have an accretive impact on Group earnings from the first year.
The company says Mövenpick Hotels & Resorts will benefit from its loyalty program, distribution channels and operating systems, which will help optimise performance.
The acquisition further consolidates the AccorHotels footprint in Europe and Middle East and accelerates growth in Africa and Asia. The transaction is subject to regulatory approvals, however, but should be completed during the second half of 2018.
Sébastien Bazin, Chairman and CEO of AccorHotels, said: “With the acquisition of Mövenpick, we are consolidating our leadership in the European market and are further accelerating our growth in emerging markets, in particular in Middle East, Africa and Asia-Pacific. The Mövenpick brand is the perfect combination of modernity and authenticity and ideally complements our portfolio. Its European-Swiss heritage is a perfect fit with AccorHotels. By joining the Group, it will benefit from AccorHotels’ power, particularly in terms of distribution, loyalty-building and development. This transaction illustrates the strategy we intend to pursue with the opening up of AccorInvest’s capital: to seize tactical opportunities to strengthen our positions and consolidate our leaderships, as well as leverage our growth.”
