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--- Connecting LPs & GPs worldwide
Helsinki-based private equity firm Intera Partners has agreed to buy a majority stake in Royal Ravintolat, the largest privately held hotel and restaurant group in Finland. Financial terms of the deal were not disclosed.
Royal Ravintolat is best known for small luxury hotel chain Hotel Haven, the recently opened Hotel Fabian and 27 restaurants in 21 different locations which employ more than 500 people in Helsinki. The company’s turnover target for 2011 is about €67m.
The current owners, the Saari and Hynninen families, will remain significant minority owners after the transaction, which is being undertaken to prepare Royal Ravintolat for expansion and a changing market situation in the metropolitan area, Intera said in a statement.
The hotel and restaurant industry in the Helsinki area is expected to grow despite the economic uncertainty of the near future. The €1.2bn hotel and restaurant market in the metropolitan area is anticipated to expand, led by the travel industry.
Tuomas Lang, a managing partner at Intera, said, “Capital areas have unique hotel and restaurant submarkets and are the areas least affected by changes in the economic environment. The service sector is constantly gaining importance in Helsinki, and with its capable personnel and long-term strategic management, Royal Ravintolat has developed into an industry leader for the region.”
In April Intera closed its Intera Fund II Ky with commitments of €200m. The firm primarily targets Finnish companies with revenues between €10m and €100m that have room to expand either in the domestic market or abroad with a capital injection.
The firm closed its first fund, Intera Fund I, in 2007, and has backed seven companies including building renovation contractor Consti, household products retailer Orthex, and electronics business Trafotek.
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Tags: buy-out, hotels, restaurants
