Värde Partners Acquires Boscolo Hotels: Transaction is one of the Largest Deals in the Italian Hotel Sector Since Global Financial Crisis
MILAN – Värde Partners, the $12 billion global alternative investment firm, today closed on its acquisition of 100% of the equity of Gruppo Boscolo, the Italian luxury hotel group.
The agreement follows Värde’s acquisition of over 90% of the company’s outstanding debt from its original lenders via 9 separate transactions. The original lending group advanced more than €350 million to finance the group’s operations and included more than 20 domestic and foreign financial institutions. Värde began acquiring the debt in the secondary market in mid-2016, following multiple attempted restructurings of the company. Today’s equity acquisition concludes Värde’s takeover of the company. The company was founded in 1978 and has been controlled by the Boscolo family for close to four decades.
Gruppo Boscolo will continue to own and operate 9 luxury hotels located across key cities in Italy (Rome, Florence, Milan and Venice), France (Nice), Hungary (Budapest) and the Czech Republic (Prague). The trophy properties include over 1,300 rooms. As part of the transaction, the Boscolo family will retain Boscolo Tours, a domestic tour operator and Hotel Airone, a 97 room hotel in Chioggia.
“The acquisition we closed today demonstrates the value of patience coupled with creative sourcing strategies and quality execution in complex distressed situations. We spent over six months acquiring the debt from local financial institutions and another three negotiating the acquisition of the equity from the Boscolo family,” said Francisco Milone, Senior Managing Director of Värde.
“The assets we acquired today are unique in terms of both their leading position in key tourist-driven cities and their potential for strong operating performance going forward. We intend to support that performance with additional capital and strong management. Fixing the balance sheet has provided a clear path to growth,” said Luca Malighetti, Managing Director in Värde’s Milan office.
Värde was advised by Ernst and Young, Gianni, Origoni, Grippo, Cappelli & Partners, Orrick, and Ludovici Piccone & Partners.
About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.