Starwood Capital prepares to acquire Groupe Taittinger, Societe Du Louvre
Signs an agreement to acquire Groupe Taittinger, owner of Taittinger CVCC, the world's sixth largest champagne producer, and Societe Du Louvre, Europe's second largest hotel network.
25/07/05 Starwood Capital Group, a closely held real estate investment firm based in Greenwich, Connecticut, has announced it has signed an agreement to acquire a controlling interest in French holding company Groupe Taittinger, owner of Taittinger CVCC, the world's sixth largest champagne producer, and in Societe Du Louvre, Europe's second largest hotel network.
Members of the Taittinger Family, the CNP (Albert Frere Group) and the Societe Fonciere, Financiere et de Participations - FFP, who collectively own more than 65% of the share capital of the Taittinger Group, have all agreed to sell their stakes in the Taittinger Group to Starwood Capital. This agreement also includes the direct stakes of respectively 15.28% and 6.02% owned by the CNP and FFP in Societe du Louvre, a 44.08% subsidiary of Groupe Taittinger. The cost of the total investment is approximately 1.2 billion euros.
The sale of the Groupe Taittinger shares will be paid in cash at 336.24 euros/share, 295.89 euros/investment certificate and 40.35 euros/voting certificate, which equates to an enterprise value of 1,166 million euros for 100% of the Taittinger Group. The sale of Societe du Louvre shares will be done in cash at 147.06 euros/share, 129.41 euros/investment certificate and 17.65 euros/voting certificate, which equates to an enterprise value of 1,689 million euros for 100% of the Societe du Louvre.
Societe Du Louvre owns and operates a unique collection of 14 luxury hotels with over 3,000 rooms in France, Switzerland and Germany, including Le Crillon and Lutetia hotel in Paris and the Martinez in Cannes. It is also the second largest budget hotel chain in Europe, comprising 805 budget hotels (211 owned) with more than 51,000 rooms (15,940 owned) in Europe, including the hotel brands Premiere Classe, Kyriad and Campanile. Societe Du Louvre is also active in the luxury goods business, owning 51.7% of the prestigious Baccarat brand (BCRA.PA) and 100% of Annick Goutal, the well known perfume producer.
Starwood Capital is perhaps best known for its recapitalization, reorganization and expansion of a troubled real estate investment trust to become what is today Starwood Hotels & Resorts Worldwide, Inc. Starwood Capital is led by Barry Sternlicht, who for nearly 10 years until May of this year served as the Chairman and CEO of Starwood Hotels. Under Mr. Sternlicht's leadership, Starwood Hotels grew from an $8 million enterprise into a company enjoying a market value in excess of $15 billion today and is the leading international owner/operator of hotels measured by EBITDA in the world, with ownership of brands such as Westin, Sheraton, "W", St. Regis, Luxury Collection and Four Points. Mr. Sternlicht created both the "W" and the St. Regis brands. Six years later, there are more than 50 of these properties operating or under development around the world.
