SBE Entertainment Secures $319M Investment From AccorHotels
Pryor Cashman is representing hospitality company SBE Entertainment Group in connection with a $319 million investment from Paris-based AccorHotels.
Under the deal, which is expected to close July 31, 2018, AccorHotels will pay $125 million to buy half of SBE's common equity, part of which is held by Cain International, and will contribute $194 million to buy all existing preferred units of the company, some of which are also held by Cain International.
Following the investment, Sam Nazarian, SBE's founder and CEO, will still own 50 percent of SBE. Nazarian founded the company in 2002, and Cain International and SBE teamed up in 2016.
"This long-term investment by AccorHotels provides SBE, its customers and hotel owners with greater depth and breadth around the world and supports our collective ambition to be the best lifestyle hospitality company in the market," Nazarian said in a statement.
SBE will use the investment to expand into new markets in Latin America and the Middle East. The company's current project pipeline includes projects in Washington, D.C.; Chicago; Atlanta; Rio de Janeiro; Dubai, United Arab Emirates; Cancun, Mexico; Mexico City; Tokyo; and Los Cabos, Mexico.
News of the deal was covered by The Wall Street Journal, Reuters and Law360, among other outlets.
The Pryor Cashman Team
Leading the representation of SBE is Todd Soloway, Chair of Pryor Cashman’s Hotel + Hospitality Group, John Crowe, Co-Chair of the Corporate and M&A Groups, and Partners Richard Frazer, Teresa Lee and Michael Dunworth.
Special Counsel Philippe Zylberg, along with Corporate Associates Michelle Pham, Gene Levin, Edward Cohen and Matthew Repetto, and Real Estate Associate Ari Buchen also worked on the transaction.
