Accor has signed an agreement with Brookfield Asset Management Inc., and Espirito Santo Resources, Ltd., to acquire the two companies’ combined 50% stake in Brazil’s Ticket Servicos for…
Accor has signed an agreement with Brookfield Asset Management Inc., and Espirito Santo Resources, Ltd., to acquire the two companies’ combined 50% stake in Brazil’s Ticket Servicos for approximately €200 million.
Jointly held since 1976 by Accor (50%), Brookfield Asset Management Inc. (40%) and Espirito Santo Resources, Ltd. (10%), Ticket Servicos manages service vouchers and hotels in Brazil under the Accor brands and food catering services under a local brand. This successful 30-year-old partnership enjoyed strong growth of its results over the last 10 years and has helped make Ticket Servicos a major player in its businesses.
Once the transaction has been completed, Accor will hold a 100% stake in the company’s service vouchers and hotel operations and a 50% stake in its food services operations, with Compass owning the other 50%. These businesses will generate in 2006 total revenue of over €500 million and an EBITDA of approximately €70 million.
In services, Ticket Servicos has the issue volume of more than €2.2 billion, a 38% market share and 4 million users a day.
In Hotels, the company operates 130 hotels (nearly 20,000 rooms) under the Formule 1 (5 establishments), Ibis (41), Mercure (68), Novotel (11) and Sofitel (5) brands, primarily through management contracts.
The transaction will be accretive to the Net Profit of Accor in 2007, by €10 million.
Gilles Pelisson Accor’s Chief Executive Officer said: “In line with the strategy announced last September to speed development in emerging countries, the transaction strengthens Accor’s positions in Brazil in both its businesses—Services and Hotels. With a growth of over 15% of its issue volume in Services and over 60 hotel projects under development, this acquisition will enable Accor, thanks to its Brazilian operations and teams, to implement platforms for expansion throughout Latin America, a region that will drive the Group’s growth in the future”.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
