Clearwater International advises B&B’s Management on the sale of Carlyle to PAI

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Clearwater International advised B&B’s Management on the sale of Carlyle to PAI.

Global alternative asset manager The Carlyle Group and Montefiore Investment entered into exclusive negotiations with private equity firm PAI Partners for the acquisition by PAI of Groupe B&B Hotels alongside B&B’s management team. The equity for the transaction would be provided by PAI Europe VI, PAI’s latest €3.3bn fund.

Founded in Brittany, France in 1990, B&B operates a network chain of 343 budget hotels as of 30 September 2015 with a total of 28,503 rooms across France, Germany, Italy, Spain, Poland, Czech Republic and Morocco. B&B is at the “high-end” of the budget hotel segment, serving business and leisure travellers. PAI intends to continue investing in the growth of the B&B platform by accelerating the hotel opening pace across Europe and beyond.

Clearwater International helped the Management team to play a central role in the sale process but also for the future of the company, taking into account the diversity of the bidders (investment funds, international trade buyer) leading to different approaches in terms of development plan, governance, investment horizon, liquidity, etc.

The Clearwater International team was led by Partner Thomas Gaucher.

Georges Sampeur, Chairman and member of the Executive Committee, B&B Hotels commented: “We are exceptionally proud of B&B’s achievements over the past 25 years and believe PAI’s institutional support will facilitate our plans for expansion and further enhance the service we provide. Our success underscores the appeal of our concept. We look forward to working with PAI and are thankful to Carlyle and Montefiore for their support over the years.”

Jonathan Zafrani, Managing Director, Carlyle Europe Partners added: “B&B is typical of the Carlyle approach to investment whereby we support national champions as they grow their business operations internationally and into new markets. We are happy with the value we have created at B&B.”

Pierre-Olivier Desplanches, Director, Carlyle Europe Partners said: “We are proud of having worked alongside Georges Sampeur and his teams to enable significant development of the B&B platform across Europe.”

Eric Bismuth, CEO of Montefiore Investment added: “The incredible expansion of B&B perfectly illustrates our ‘Focus & Growth’ strategy that combines growth and profitability for our portfolio companies. We are very proud of having supported the company over the last decade and brought our expertise to its talented management to transform B&B into a reference in the hotel industry in Europe.”

Edward Chandler, Partner, PAI Partners said: “We are delighted to partner with Georges Sampeur, Fabrice Collet and their team to support the continued expansion and success of this exceptional business. B&B has created one of the most valuable brands in the European hotel industry, and we look forward to expanding B&B’s coverage of the European and international markets.”