CMS advises Scandic Hotels Group on landmark acquisition of Dalata Hotel Group operations
CMS has advised Scandic Hotels Group AB (Scandic) on its framework agreement with a consortium comprising Pandox AB and Eiendomsspar AS (the consortium) to acquire the hotel operating business of Dalata Hotel Group Plc (Dalata). The consortium has today announced a recommended cash offer under the Irish Takeover Rules to acquire the shares of Dalata at a price equivalent to EUR 6.45 per share, valuing Dalata at around EUR 1.4bn on a fully diluted basis.
Subject to completion of the acquisition of Dalata by the consortium and various regulatory clearances, Scandic will have an option to acquire the operating business of Dalata, including the Maldron and Clayton brands, for EUR 500m (subject to normal adjustments for cash, net debt and net working capital). Acquisition of the Dalata operating business would add 56 hotels and around 12,000 rooms to Scandic’s portfolio, primarily across Ireland and the United Kingdom and is expected to complete in 2026 following the separation of Dalata’s real estate and operating businesses. CMS is acting for Scandic on all UK corporate, real estate, equity capital markets and competition aspects of the deal.
Thomas Page, Global Head of CMS’s Hospitality, Travel & Leisure group, said: “This transformational acquisition highlights the continued strength and resilience of the European hotel market and reflects the ability of CMS to deploy integrated, multi-disciplinary teams for our clients’ most strategically significant transactions. Bringing together our top-tier hospitality practice with our leading real estate capital markets specialists allowed us to deliver seamless advice across practice areas and jurisdictions.”
The CMS team is led by partners Thomas Page (Corporate) and Scott Curtis (Real Estate), with key support from James Parkes (Partner, Public M&A/Equity Capital Markets) and Farrah Kiyani (Senior Associate, Corporate), alongside specialists from the firm’s real estate, tax, competition and employment practices, including Chloe Lammiman and Danielle Rumens (Corporate); Anna Burchner, Henry Bolton and Arran Bhatiani (Tax); Lizzie Saunders (Real Estate); Neil Baylis and Emma Waterhouse (Competition); and Sarah Ozanne (Employment).
Macfarlanes, led by corporate real estate partner, Victoria Hills, advised the consortium on corporate, real estate, financing and competition matters in the UK. Mathesons advised the consortium and Scandic on Irish law matters.
