La Quinta Announces Agreement to be Acquired by The Blackstone Group
La Quinta Corporation and La Quinta Properties, Inc. (NYSE:LQI) today announced that they have entered into a definitive merger agreement to be acquired by an affiliate of The Blackstone Group for $11.25 per paired share in cash.
The price represents a premium of 37% over yesterday's closing price of $8.22. The total value of the transaction, including debt, is approximately $3.4 billion.
The boards of directors of La Quinta unanimously approved the merger agreement and recommended approval by their stockholders. La Quinta Corporation stockholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date to be announced. The completion of the merger agreement is subject to various customary closing conditions. The closing of the merger agreement is expected to occur during the first quarter of 2006. Completion of the merger agreement is not subject to the receipt of financing by Blackstone.
Francis W. ("Butch") Cash, chairman and chief executive officer for La Quinta, said, "We are pleased to have signed a merger agreement with one of the world's preeminent owners of hotels and resorts. Blackstone was attracted by our strong brands, high quality hotels, excellent management team and operating culture that is focused on delivering superior guest satisfaction. We believe this transaction is beneficial to our stockholders and will build on the accomplishments we have achieved over the last five years."
Jonathan D. Gray, senior managing director of The Blackstone Group, said, "We are excited to be acquiring La Quinta and look forward to working with its employees and franchise owners to continue the company's success. We feel particularly fortunate to inherit such a great organization and vibrant franchisee base."
Morgan Stanley acted as financial advisor to La Quinta. Bear Stearns, Deutsche Bank, and Merrill Lynch acted as financial advisors to Blackstone. Acquisition financing is being provided by Bank of America, Bear Stearns, and Merrill Lynch. Goodwin Procter LLP acted as legal advisor to La Quinta. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.
About La Quinta | La Quinta Corporation and its controlled subsidiary, La Quinta Properties, Inc. (NYSE:LQI) is one of the largest owner/operators of limited-service hotels in the United States. Based in Dallas, Texas, the Company owns and operates 360 hotels and franchises more than 240 hotels in 39 states under the La Quinta Inns(R), La Quinta Inn & Suites(R), Baymont Inn & Suites(R), Woodfield Suites(R) and Budgetel(R) brands. For more information about La Quinta Corporation, please visit .
