It is there. While the market bruissait rumors for several months, Eurazeo has decided to launch a process for the sale of the French B & B, number three group of economic hotel (total 216 institutions). The holding company of investment side, which holds approximately 73 of its capital, has indeed mandate, according to concordant sources, the Bank Rothschild & Cie to examine the interest and the feasibility of an assignment, knowing that many brands of interest have already been expressed.
According to several sources, Eurazeo wishes to obtain a higher price than the assignment of B & B EUR 450 million, that he had returned to the Duke Street Capital Fund in the summer 2005 to EUR 383 million. The process would be short with a first round set for June 15, the aim being to complete the operation before end of July. According to another source, "there is no timetable but can move quickly in view of the simplicity of the record." Eurazeo is refused to any comment.
On investment funds, the names of LBO France, Carlyle, Axa Private Equity, Advent, Cinven, BC Partners, Permira, and same Duke Street Capital is advanced among the suitors. The banking pool - Natixis and HSBC - who had participated in the operation in 2005 would be willing to provide funding, with a lever equivalent to 4.5 times the gross operating surplus.
B & B would also be hotel groups British Whitbread, Travelodge, and InterContinental Hotels Group (IHG). What may surprise: the first, active in the economic hotel with Premier Travel Inn, is poised to change the Director-General. The second is controlled by Dubai International Capital, which has heavily invested revel in the middle of the Decade. IHG, is primarily of a franchisor.
The opinion of the management, which has so far remarkably piloted the company which holds 6 of the capital, will be crucial in this case. Are also in the round table Montefiore Investment (approximately 10), which may be interested to accompany a new reference shareholder, and the family Jacquier (about 12), become shareholder by giving Villages Hotel B & b in 2006.
European expansion
The mission of Rothschild is also involved in a context where the question of the financing of the continuation of the European expansion of B & B. While strengthening its network in France (today 182 institutions), the company, which has positioned itself as an economic quality hotel operator, is including Overdrive Germany (31 hotels) and Italy (3 units).
It provides to open this year 9 additional facilities in Germany - whose own 7-, and 2 others in Italy. In parallel, B & B open its first hotel in the Portugal and Poland, Porto and Torun respectively. It is this ability to duplicate its concept arouses the interest of investors, as B & B has confirmed the strength of its economic model and the relevance of its positioning marketing during the crisis. Last year, the operational result (excluding rents) reached EUR 71 million, an increase of 11.3 compared to 2008, for a turnover of 178.7 million, an increase of 10.6.
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