EQT acquires Scandic Hotels
EQT V (“EQT”) acquires Scandic Hotels AB (“Scandic”) from Hilton Hotels Corporation, (NYSE:HLT). Scandic is the largest hotel chain in the Nordic region with 132 hotels and more than 23,000 rooms in 9 countries in northern Europe. In 2006, the company reported sales in excess of SEK 6 billion and has approximately 5,700 employees.
The Scandic brand is familiar to over 90 per cent of the population of the Nordic region. The company has a balanced guest mix, divided into business, meeting and leisure customers and a very high proportion of return guests. Scandic is a company in which values play an important role. The Company has developed an environmental programme which is a leader in the industry and includes extensive training for all employees and broad social sustainability work. The goal is to be a good company in a good community locally in every town and city where Scandic has a hotel.
“Scandic is the most efficient hotel chain in the Nordic region, at the same time as the Scandic brand enjoys a unique position on the Nordic market. The company fits in well with EQT's strategy of investing in well-managed, market leading companies with growth potential. It is our ambition to further strengthen the company's position on the markets where hitherto the market potential has not been exploited in full", says Caspar Callerström, Partner at EQT Partners who is advisor to EQT V.
EQT's equity funds have a history of creating growth and value in the companies that are acquired. During the past 12 years, the funds have invested in 43 companies in Europe. During the period in which EQT has been owner, these companies have reported annual sales growth of 11 per cent and the number of employees has increased by a similar figure.
“It will be a very stimulating task to implement EQT’s growth oriented strategy together with Scandic’s employees. EQT’s, industrial focus, financial resources and tradition of investing in growth create sound opportunities to expand the business both organically and through acquisitions. It is my conviction that the change in ownership creates the best possible conditions for Scandic's employees to offer a high level of service and consideration to our guests and customers in the future", comments Frank Fiskers, who will join Scandic as CEO in connection with the change of ownership.
The sale is conditional on approval from the relevant competition authorities.
Handelsbanken, CIBC and KPMG have acted as financial advisors, Vinge as legal advisor and Bain as commercial advisor to EQT.
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Caspar Callerström, Partner,
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