US PRIVATE equity firm Carlyle Group has snapped up B&B Hotels from French holding firm Eurazeo in a deal valuing the chain at €480m (£413m).
Eurazeo announced in July it was in exclusive negotiations with Carlyle to sell the budget hotel chain.
B&B Hotels is France’s third-largest budget hotel group after Accor and Louvre Hotels, which is owned by US investment group Starwood capital.
The sale will generate proceeds of €184m for Eurazeo, based on estimated net debt at the end of September.
B&B Hotels also operates in Germany and is expanding in Italy, Poland, Portugal and Hungary.
In 2009, the hotel chain posted an 11.3 per cent rise in operating profit to €71m.
Eurazeo has a portfolio of almost €4bn in assets, with major shareholdings in companies including hotel group Accor and wholesaler Rexel.
Earlier this week Carlyle sealed a joint venture deal with Generation Estates, heralding a big push in the student accommodation sector.
The group recently scrapped plans to sell US defence and aviation group Arinc, after failing to find a buyer for the firm. Carlyle, is now thought to be pursuing an initial public offering.