Foundation Asset Management (Fam), a Swedish foundation asset management firm, has acquired Swedish hotel company the Grand Group in Sweden and the Grand Hôtel property in Stockholm, for SEK 3.9 bn (€386 mln) from Patricia Industries and its subsidiary Vectura.
The deal includes the hotel operations Grand Hôtel, Lydmar Hotel and The Sparrow Hotel, all located in Stockholm, as well as the Grand Hôtel property.
The total transaction value amounts to SEK 3.9 bn, of which approximately SEK 0.3 bn is for Grand Group and approximately SEK 3.6bn for the Grand Hôtel property, which comprises 28,800 m2 of space and 273 rooms and suites. In recent years, 2,600 m2 of office space were added to the property.
Johan Forssell, CEO of Investor AB, owner of Patricia Industries, said: 'The management team has done a great job in developing the Grand Group, further improving its customer offering and efficiency. However, we have concluded that the hotel segment does not fit with our investment priorities.
'Thus, it is a natural step for us to divest to Fam, a new, capable long-term owner who can further develop the Grand Group. The divestment further sharpens the focus in our portfolio.'
Christian Cederholm, head of Patricia Industries, said: 'In Fam we have found a great new home for Grand Group. The divestment frees up resources that we will use to continue to develop Patricia Industries and our existing companies.
'For Vectura, the divestment of the Grand Hôtel property allows more focus on expanding the core business within community services and office premises.'
Considering the relationship between Investor and Fam, which are both controlled by the Wallenberg family, the transaction has been evaluated by a third party. In this case Investor has engaged EY for a fairness opinion of the transaction.
The transaction is expected to be completed, subject to regulatory approval, during the second quarter 2021.
Savills advised the buyer.
