14 February 2007,
Natixis finances the acquisition of Groupe Villages Hotels by B&B Hotels
Following the wishes of its principal shareholder, Eurazeo, B&B Hotels is acquiring Groupe Villages Hotels. Natixis has been mandated as sole bookrunner for the financing requirements.
Ranking number # 3 on the French budget hotel segment, B&B Hotels have purchased 100% of the capital of SFIH, the holding company of the Groupe Villages Hotels. The new group, which is more than 73% controlled by Eurazeo, has realized during 2006FY a pro forma combined turnover in excess of EUR 130 million with an Ebitda in the region of EUR 50 million.
Thanks to a strong geographical complementarity and a common business model between the two networks, the combined Group now enjoys a densified coverage of the whole French territory. Through this transaction, B&B Hotels considerably strengthen its accommodation capacities with a total of 170 hotels (and nearly 13,000 bedrooms) in addition to 13 hotels located in Germany. This operation is part of the Management strategy which consists in becoming a major player on the European budget hotel market.
With a view to improving the Group’s operating and legal existing organization the financing structure includes the short term use of a bridge loan. The latter will then be converted into a longer term financing, notably with the issuance of subordinated obligations up to EUR 30 million. The underlying objective of such a scheme is to monitor a rapid development of the network and the group’s financial structure in the long term. In addition to these facilities, the group can utilise a EUR 140 million credit line, which has only been partially used since being put in place by Natixis at the time of the purchase of B&B Hotels by Eurazeo in 2005.
Since closing, the financing has been syndicated to Eurohypo (arranger), HSBC, HSH Nord Bank, Hypo Real Estate (co-arranger) and BNP Paribas (participant).
In 2005, Natixis was sole bookrunner of the LBO arranged for the B&B Group’s acquisition by Eurazeo.
Contacts
NATIXIS NATIXIS Valérie Boas Christine Chaussade Press relation Communication Tel : +33 1 58 19 25 99 Tel : +33 1 58 32 29 82 [email protected] [email protected]
About Natixis: Natixis, the “investment and project bank” is the jointly held bank of the Caisse d’Epargne and Banque Populaire groups in financing and investment banking, asset management and financial services. With approximately 23,000 employees, a net banking income of €6.1bn, and a group share shareholders’ equity of €15.8bn, it is a major player in its sector in Europe. Natixis holds leading positions in its businesses in France, in Europe and on a worldwide basis: number 1 asset management bank in France with €534bn assets under management, number 1 in France for employee savings schemes. Natixis also enjoys expertise acknowledged worldwide regarding credit insurance (number 3 worldwide), and structured financing (real estate, commodities, asset-backed, leverage finance).
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