M&A · Industrials · Hotels & Motels
Blackstone and Starwood Capital Group to acquire Extended Stay America, Inc.
Announced Mar 15, 2021 · Closed Jun 16, 2021
Deal value$6.00BEV $5.78B
Premium15.1%To unaffected price
EV / Adj. EBITDA15.9x5.5x EV / Revenue
ConsiderationAll cash$19.50 per share
Transaction
- Acquirer
- Blackstone and Starwood Capital Group
- Target
- Extended Stay America, Inc.
- Buyer type
- Private equity
- Offer price per share
- $19.50
- Enterprise value
- $5.78B
- Status
- Closed Jun 16, 2021
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- $300M · 5.0%
- Go-shop
- No-shop
- Financing
- Committed · JPMorgan, Citigroup, Deutsche Bank, Goldman Sachs
Advisors
- To the acquirer
- JPMorgan, Citigroup, Deutsche Bank
- To the target
- Goldman Sachs, BofA Securities
Sector context · Industrials
- Comparable deals
- 16 in the prior 24 months
- Premium
- 15.1% vs. 27.0% sector median
- EV / Adj. EBITDA
- 15.9x vs. 9.4x sector median
- Break fee
- Sector median 2.4%
Timeline
- AnnouncedMar 15, 2021
- Proxy filedApr 13, 2021
- Definitive proxyApr 26, 2021
- Shareholder voteJun 11, 2021
- ClosedJun 16, 2021
Valuation · fairness opinions
Discounted cash flow$15.26$22.47
52-week trading range$19.29$21.21
52-week trading range$19.76$25.47
Offer $19.50
Implied value per Extended Stay America, Inc. share by analysis, from Goldman Sachs · DCF discount rate 7%–8%.