TORONTO — Four Seasons Hotels and Resorts has announced that its longstanding shareholder, an affiliate of Cascade Investment, L.L.C., has entered into a definitive agreement to acquire a controlling interest in the company.
In the all-cash deal, Cascade will increase its existing 47.5-per-cent stake to 71.25 per cent by purchasing half of the existing 47.5-per-cent stake owned by an affiliate of its long-term investment partner Kingdom Holding Company, for $2.21 billion, valuing Four Seasons at a $10 billion enterprise value. Four Seasons Founder and Chairman, Isadore Sharp, through Triples Holdings Limited, will retain his five-per-cent stake.
The transaction marks a pivotal point in the evolution of Four Seasons, strengthening Cascade’s commitment to provide the company with resources to accelerate growth and expand its strategic goals. Cascade first invested in Four Seasons in 1997 when the Company was public.
“As we mark our 60th anniversary and look back on the profound impact that Four Seasons has had on luxury hospitality, we also look forward with tremendous excitement and confidence in the future of the industry,” says Four Seasons CEO John Davison. “The unwavering support and partnership of our shareholders has and continues to be critical as we capitalize on growing opportunities to serve luxury consumers worldwide.”
Sharp founded Four Seasons in 1960 and set the company on its path toward global expansion. Four Seasons now manages 121 hotels and resorts, as well as 46 residential properties in 47 countries complemented by a strong pipeline of more than 50 projects at various stages of development. Four Seasons shareholders took the company private in 2007, executing a strategy that expanded new opportunities for guests, residents, employees and hotel owner partners worldwide.
Following the transaction, and through its affiliate’s ownership of its 23.75 per cent in Four Seasons, KHC remains strongly committed to the company and looks forward to continuing to assist Four Seasons with its growth plans.
The sale is expected to close in January 2022, pending regulatory approvals and the satisfaction of other customary closing conditions.