15 Dec 2015

Paris, France: Global alternative asset manager The Carlyle Group (NASDAQ: CG) and Montefiore Investment today announced that they have 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.

The offer is subject to the consultation process of the relevant “Comités d’entreprise” (French employee works councils) and all parties will enter into the final negotiations on successful completion of this process.

Georges Sampeur from B&B Hotels, said:
“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, said:
“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, added: “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 at PAI commented:
“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.”