M&A · Industrials · Hotels & Motels
Sonesta International Hotels Corporation to acquire Red Lion Hotels Corp
Announced Dec 30, 2020 · Closed Mar 18, 2021
Deal value$90MEV $90M
Premium88.0%To unaffected price
EV / Adj. EBITDA—1.3x EV / Revenue
ConsiderationAll cash
Transaction
- Acquirer
- Sonesta International Hotels Corporation
- Target
- Red Lion Hotels Corp
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- $90M
- Status
- Closed Mar 18, 2021
Deal protections
- Break fee (target pays)
- $2.5M · 2.8%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Not disclosed
- To the target
- Jefferies, CS Capital Advisors
- Jefferies fee
- $2.5M
Sector context · Industrials
- Comparable deals
- 7 in the prior 24 months
- Premium
- 88.0% vs. 30.0% sector median
- EV / Adj. EBITDA
- Sector median 9.2x
- Break fee
- 2.8% vs. 2.4% sector median
Timeline
- AnnouncedDec 30, 2020
- Proxy filedJan 26, 2021
- Definitive proxyFeb 9, 2021
- Shareholder voteMar 16, 2021
- ClosedMar 18, 2021
Valuation · fairness opinions
Discounted cash flow$3.03$3.38
Trading comparables$0.91$1.09
Trading comparables$0.64$0.86
Premiums paid$2.32$2.92
Premiums paid$2.29$3.07
Implied value per Red Lion Hotels Corp share by analysis, from Jefferies.