FAM AB acquires the Grand Group, including the Grand Hôtel real estate property
FAM AB has entered into an agreement with Patricia Industries, a part of Investor AB, to acquire the Grand Group, which includes the hotel businesses Grand Hôtel, Lydmar Hotel and The Sparrow Hotel, and the Grand Hôtel real estate property owned by Vectura, a subsidiary of Patricia Industries.
The Grand Group, offering accommodation, food and beverage, spa, conference and event services, consists of Scandinavia's leading hotels – The Grand Hôtel, The Lydmar Hotel and The Sparrow Hotel, all located in beautiful surroundings in central Stockholm. The Grand Hôtel has been home to many international and national guests since 1874 and has been owned by Investor AB since 1968. The Cadier Bar, the classic Swedish Veranda restaurant, and Mathias Dahlgren's award-winning restaurants all provide world-class food and beverage experiences at the Grand Hôtel.
“We are pleased that the Grand Group is now getting a new home with us at FAM. With the hotels' strong brands located in iconic buildings in central Stockholm, we see an exciting and long-term potential for their positive development going forward, despite the current challenges of the COVID-19 situation. In addition to its prominent hotel and restaurant business, the Grand Hôtel property fits well into our portfolio as a real estate asset with great opportunities. We look forward to working with the board of directors, management and employees to further develop the Grand Group's concept and customer offerings, as well as the property and thus Stockholm," says Håkan Buskhe, CEO of FAM.
The total transaction value amounts to SEK 3.9 billion, of which approximately SEK 0.3 billion for the Grand Group and approximately SEK 3.6 billion for the Grand Hôtel property. The transaction, subject to the approval of the Swedish Competition Authority, is expected to be closed in the second quarter of 2021.
Given the related party relationship that prevails between FAM and Investor AB, the valuation and other terms of the transaction have been evaluated by third parties. FAM has obtained a valuation assessment of the operation from Erneholm Haskel, and regarding the property, from Savills. The decision of FAM’s board of directors has been made without the participation of members who could be assumed to have a conflict of interest.
In its statement AMN 2021:21 on this matter, the Swedish Securities Council has considered that good practice on the stock market does not require that its rulings be applied to transactions below the limit value for the size of transactions as stated in the Swedish Companies Act. The Grand Group transaction is below this limit value. The Swedish Securities Council has no other comments on the transaction.
If you have any questions, please contact:
Laura Bergtoft, Head of Communication, FAM
Phone: +46 735 152 261
About FAM AB:
FAM is a privately-owned holding company that manages its assets by acting as an active owner with a long-term ownership horizon. FAM is owned by the three largest Wallenberg Foundations, the Knut and Alice Wallenberg Foundation, the Marianne and Marcus Wallenberg Foundation, and the Marcus and Amalia Wallenberg Foundation. FAM focuses its ownership on a number of strategic holdings and a selection of alternative investments. By actively contributing to the long-term development of holdings, their dividend capacity and value can increase over time. Growth in the value of the holdings and dividends from FAM contribute to the Foundations' value growth and their ability to give grants for research and education. Read more about FAM.