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Belmond, based in London, offers its wealthy clients some of the most opulent travel experiences that money can buy in places like the Hotel Cipriani in Venice; the Copacabana Palace, Rio de Janeiro;
As a sign of the growing importance gained by these experiences in the luxury market, Belmond is bought by LVMH Moët Hennessy Louis Vuitton, of France, at LVMH, owner of brands such as Christian Dior, Louis Vuitton and Fendi, announced Friday (14) that he would pay $ 25 per share of Belmond, the world's largest luxury goods company, according to the sales criteria.
a premium of more than 40% on the last closing value of the company during a transaction valued at $ 2.6 billion.
"Belmond offers a unique experience to select travelers and controls many outstanding badets in most destinations," said Bernard Arnault, chief executive officer of LVMH, in a statement announcing the transaction, the company's first substantial acquisition ever since. more than 18 months.
The takeover of the shares, which should be completed in the first half of next year, expands the portfolio of LVMH hotels, which already includes the Cheval Blanc Courchevel, Maldives, St Barthelemy and Paris; and the Bulgari Hotels and Resorts hotel chain
It also coincides with a change in the habits of many affluent consumers, who move from luxury goods to affluent experiences.
Global spending on the so-called experimental economy – According to the Euromonitor market research group, sales are expected to reach $ 8.2 trillion by 2028. The growth of already pbadionate categories – such as expensive travel, accommodation, food and wine – has attracted the interest of the most successful buyers for hungry consumers.
"The LVMH transaction makes sense if we take into account the continued growth in the number of wealthy people in the world and the increasingly discernible shift of luxury by experience," said Thomas Chauvet, director of European equity research in the luxury sector at Citi, in a note to investors in which he indicates that the acquisition could be used by LVMH to increase sales of its products.
Belmond owns, owns or administers 46 hotels, restaurants, trains and luxury river cruise agencies. Its portfolio includes safari camps in Botswana and the only hotel located inside the citadel of Macchu Picchu in southern Peru. The company's average hotel rates range from $ 448 in Asia to $ 1,206 in Europe.
The company's shares jumped 58% from August, after the announcement of a strategic review by the Belmond Board of Directors. speculation about a possible acquisition battle between LVMH and private equity groups such as Blackstone and KKR.
During the 12-month period ended September 30, Belmond posted a profit before interest, amortization and amortization of $ 140 million.
"We are confident that Belmond's ability to deliver luxurious, memorable and unique experiences will reach new heights as a member of LVMH's family of world-clbad brands." said Roeland Vos, president of Belmond.
Translation by PAULO MIGLIACCI
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