Goldman Sachs to purchase B&B Hotels from PAI Partners

24th May 2019 (Last Updated May 24th, 2019 05:21)

Goldman Sachs has entered a deal to acquire B&B Hotels from private equity group PAI Partners, for an undisclosed sum.

Goldman Sachs has entered a deal to acquire B&B Hotels from private equity group PAI Partners, for an undisclosed sum.

B&B, which was acquired by PAI in March 2016, has expanded its international footprint.

The acquisition also enabled B&B to strengthen its position in Europe and double its earnings before interest, tax, depreciation and amortisation (EBITDA).

Currently, B&B has a network of more than 486 hotels across 12 countries.

PAI Partners partner Gaëlle d’Engremont said: “Today, B&B is a strong European platform that offers consistent high quality in its budget segment and is very well placed to capture further growth.”

The current transaction constitutes the fourth exit from the PAI Europe VI fund, while the other three exits include the sale of DomusVI, Innovista Censors, and Konecta.

PAI Partners principal Andreas Kumeth added: “Alongside Fabrice and his team, we have worked hard to transform B&B from a strong local player to a truly pan-European champion. We wish Fabrice and Goldman Sachs all the best in continuing to grow B&B in the years to come.”

B&B Hotels CEO Fabrice Collet said: “PAI have been very supportive partners, helping us grow by +16% p.a. in the last three years.

“Additionally, we have benefited from their extensive experience of acquisitions and international expansion to further develop in Europe while also initiating our development outside of the Continent.”

The transaction is subject to employee consultations and other regulatory approvals and is expected to be closed in the second half of this year.