Luxury brand LVMH Moet Hennessy Louis Vuitton purchased hotel chain Belmond Ltd. (BEL) for a $3.2 billion, or $25 a share, sending Belmond shares up 40% in trading to $24.68.
Belmond is the owner, part-owner or manager of 46 luxury hotels, restaurant, trains and river cruise properties. The company reported total revenue of $572 million in the previous fiscal year.
The acquisition gives LVMH, a Parisian luxury brand that owns Fendi, Louis Vuitton, Hennessy and others, a foothold in the hospitality industry.
"Belmond delivers unique experiences to discerning travelers and owns a number of exceptional assets in the most desirable destinations," said LVMH CEO Bernard Arnault. "Its heritage, its innovative services, its excellence in execution and its entrepreneurship resonates well with the values of the Group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities."
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