FRANCE - Starwood Capital preparesTaittinger sale

Following Société du Louvre’s and Taittinger’s delistings in December 2005 and January 2006 respectively, Star GT has mandated JP Morgan and Rothschild to run an auction process to sell Taittinger. In the case of separate bids being received for its subsidiaries, Star GT would consider individual sales transactions. Belgian billionaire Albert Frère, who exited his 25% interest in the French champagne producer five months ago, has been named a probable buyer, alongside Butler Capital Partners. The company is expected to receive a first asking price in excess of EUR 500m. The process is expected to have completed by the end of Q2 2006.

Taittinger champagne house is one of France’s largest premium champagne producers. It owns 288 hectares of vineyards, responsible for approximately half of its production. In 2005 Taittinger and its affiliated brands sold 4.8 million bottles and closed 2005 with in excess of 21 million bottles in inventory. Its subsidiaries include Bouvet-Ladubay, a leading producer of sparkling Saumur wine and the Domaine Carneros winery, based in the Carneros region of California.

Barry Sternlicht’s US buyout firm purchased controlling stakes in both Taittinger and Société du Louvre in a deal worth EUR 2.6bn in September 2005. Taittinger previously owned a 44% holding in luxury and budget hotel operator Société du Louvre. The US private equity house offered Taittinger’s investors EUR 336.24 a share, equating to an equity value of EUR 1.166bn for 100%. Altogether, Starwood Capital acquired a 65% interest in Taittinger.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• France