Platinum Equity’s $1.3 Billion Acquisition of Wyndham Worldwide Corporation European vacation rental business

Deutsche Bank and Goldman Sachs are serving as financial advisors, and Kirkland & Ellis International LLP and Dechert LLP are serving as legal advisors to Wyndham Worldwide. Financing for the acquisition will be led by Bank of America Merrill Lynch. Latham & Watkins is acting as legal counsel to Platinum Equity.

Wyndham Worldwide Corporation (NYSE: WYN) has entered into a definitive agreement for the sale of its European vacation rental business to Platinum Equity for approximately $1.3 billion.

In conjunction with the sale, the European vacation rental business has entered into a 20-year agreement under which it will pay a royalty fee of 1% of net revenue to Wyndham’s hotel business for the right to use the by Wyndham Vacation Rentals® endorser brand. The European vacation rentals operations will also participate as a redemption partner in the award-winning Wyndham Rewards® loyalty program.

Wyndham’s industry-leading European vacation rental business is the largest manager of holiday rentals in Europe, with more than 110,000 units in over 600 destinations in more than 25 countries. The business operates more than two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons. It generates approximately $750 million in annual revenue and approximately $130 million of EBITDA (earnings before interest, taxes, depreciation and amortization), including allocated costs.

Wyndham Worldwide originally announced its intent to explore strategic alternatives for its European rental brands in August 2017, in conjunction with the Company’s announcement of the planned separation of its hotel business from its vacation ownership and timeshare exchange businesses. The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions including works council consultation.

Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world.

Wyndham Worldwide (NYSE: WYN) is one of the largest global hospitality companies, providing travelers with access to a collection of trusted hospitality brands in hotels, vacation ownership and unique accommodations including vacation exchange, holiday parks and managed home rentals. The company, led by Stephen P Holmes, Gail Mandel and Geoffrey A Ballotti, in 2017 recorded $5.076 Billion Revenues.

Latham & Watkins advised Platinum Equity with a team including Tom Evans (Picture), David Brown, Doug Abernethy, Maarten Overmars, Frederick Brodie, Cigi Puthuppally (M&A), Dominic Newcomb and Matthew Hope (Banking & Finance).

Kirkland & Ellis advised Wyndham Worldwide Corporation with corporate partners Matthew Elliott and Celyn Evans, finance partner Jonathan Birks, tax partner Timothy Lowe and intellectual property & technology partner Emma Flett, and, in New York, by corporate partners David Feirstein, Daniel Wolf and David Fox, and tax partner Sara Zablotney.

 

Involved fees earner: Matthew Elliott – Kirkland & Ellis; Celyn Evans – Kirkland & Ellis; David Feirstein – Kirkland & Ellis; Daniel Wolf – Kirkland & Ellis; David Fox – Kirkland & Ellis; Jonathan Birks – Kirkland & Ellis; Timothy Lowe – Kirkland & Ellis; Sara Zablotney – Kirkland & Ellis; Emma Flett – Kirkland & Ellis; Tom Evans – Latham & Watkins; David Brown – Latham & Watkins; Douglas Abernethy – Latham & Watkins; Maarten Overmars – Latham & Watkins; Frederick Brodie – Latham & Watkins; Cigi Puthuppally – Latham & Watkins; Dominic Newcomb – Latham & Watkins; Matthew Hope – Latham & Watkins;

Law Firms: Kirkland & Ellis; Latham & Watkins;

Clients: Platinum Equity, LLC; Wyndham Worldwide Corp.;

 

Print Friendly, PDF & Email