Compagnie des Alpes signs an agreement to acquire MMV

  • SECOND OPERATOR OF HOTELS AND CLUB RESIDENCES IN THE FRENCH ALPS, MMV OPERATES 20 HOTELS AND CLUB RESIDENCES IN 16 RESORTS AND HOLDS REAL ESTATE ASSETS VALUED AT €94.2M
  • MMV GENERATES REVENUES OF NEARLY 75 MILLION EUROS AND EBITDA, POST-IFRS 16, OF 25.2 MILLION EUROS
  • BY TAKING AN 85% STAKE IN MMV, COMPAGNIE DES ALPES WILL SIGNIFICANTLY STRENGTHEN ITS ABILITY TO CONTRIBUTE TO EXPANDING ACCOMMODATION RESERVATIONS AND ITS CONTRIBUTION TO IMPROVING THE CUSTOMER EXPERIENCE AND THE MOUNTAIN, WINTER OFFER AND SUMMER.

Compagnie des Alpes announces today that it has submitted a firm offer to the shareholders of the MMV group for the acquisition of an 85% stake in the second hotel operator in the French Alps. MMV operates 10 club hotels and 10 club residences. The transaction includes its hotel operator business as well as its real estate business, including a portfolio of 6 clubs 100% owned by MMV.

Founded in 1989, MMV is present in 16 ski resorts, including 6 resorts whose ski areas are operated by Compagnie des Alpes: Les Arcs, Flaine, Les Menuires, La Plagne, Samoëns and Tignes. Other ski resorts in which MMV operates accommodation include L’Alpe d’Huez, Les 2 Alpes, Isola 2000, Montgenèvre, Les Saisies and Val Thorens. MMV offers top-of-the-range 4-star and Premium accommodation specializing in family mountain holiday accommodation, winter and summer, with quality activities and infrastructure generating a high customer satisfaction rate and having obtained the certification label. Excellence from Tripadvisor (10 establishments) or Travelers’ Review Awards on Booking.com (5 establishments have an average score of 9.8).

All MMV hotels and residences offer a full range of services: outdoor and indoor activities and entertainment, spaces for relaxation, fitness and well-being, and clubs for children of all ages. The international clientele, made up mainly of English, Belgian and Dutch tourists, represents around a third of the total.

MMV has 1,000 employees, 90% of whom are seasonal. It operates a total of 11,500 tourist beds. The occupancy rate reached an average of 79% in 2022. MMV’s annual turnover amounts to nearly 75 million euros,1 of which 10% are generated in summer.

MMV deploys a sustained development strategy: among the twenty assets it operates, 8 have been opened since 2019, including 2 this year (Les Clarines in Les 2 Alpes at the start of the ski season, and Samoëns Village in Samoëns, which opened on June 30, 2022). MMV plans to open 1-2 new structures per year over the next 3 years.

In addition, MMV is expanding its offer with the launch in 2022 of Mountain Collection, an accommodation offer supplemented by enhanced services in small 4* and 5* residences and chalets. This activity, which complements the existing offer of hotel clubs and MMV residences, contributes to increasing the use of tourist accommodation, which boosts the development of the resorts concerned.

Main terms of the transaction

Compagnie des Alpes has undertaken to acquire 85% of MMV shares as part of a binding offer which may be accepted by MMV shareholders until July 29, 2022, to be exercised. In turn, the exclusivity was extended to Compagnie des Alpes over the same period. The firm sale would be subject to the usual conditions precedent, including the approval of the competition authorities (Autorité de la concurrence).

Compagnie des Alpes would thus become the majority shareholder alongside the Chairman and co-founder of MMV and its CEO, who would remain shareholders of the company, holding together the remaining 15%. The two executive shareholders would undertake to keep their shares for a period of 3 to 4 years from the date of completion of the operation, after which Compagnie des Alpes would buy back these shares.

The planned transaction would be carried out with a valuation of 172.6 million euros (for 100% of its equity), including net debt of 76.6 million euros. This valuation breaks down into 78.4 million euros for MMV’s activity and 94.2 million euros for its real estate portfolio made up of the 6 assets held directly by MMV and its participation in other assets. If completed, the two groups would be consolidated for the 2022/2023 financial year.

The operation will be financed by the Group’s available cash. It will not affect the debt ratio to be respected by the Group.

A transformative operation for Compagnie des Alpes

This operation is fully in line with the Group’s strategy as announced during the capital increase carried out in June 2021, the purpose of which is to develop its real estate activity in mountain resorts and enrich its offers of experience that generates customer satisfaction and loyalty and that will increase the use of accommodation.

MMV would strengthen and develop the activity of the Distribution & Hospitality division created in 2021 by Compagnie des Alpes. This division already includes Travelfactory, the leading French tour operator selling package mountain stays, 12 real estate agencies, 5 residences operated by the latter or by Travelfactory, and the Group’s holdings in real estate projects.

Dominique Thillaud, CEO of Compagnie des Alpes, said“We would be delighted to welcome theThe MMV teams at Compagnie des Alpes. This natural alliance of two major players in tourism in the French Alps, who know each other well, would create a platform for mountain holidays and contribute to the economic vitality of the regions in which we operate, winter and summer. We share the belief that building regional ties, where we are close to the needs of local communities, is vital for our development.
This is an important operation for Compagnie des Alpes which, with a quality accommodation offer aimed at family holidays, goes directlycontribute to securing a more intensive use of our accommodations – byoffer an alternative to sales by cutting – and repeating customer visits to ski resorts. MMV will strengthen our Distribution & Hospitality division dedicated to the sale of stays in the mountains and will benefit from the support of Compagnie des Alpes to accelerate its development plans.”

Yariv Abehsera, Head of the Distribution and Hospitality BU: “In a sector shaken by the crisis which has called into question the sustainability and development prospects of many key players, this sends a strong signal of diversification. Vacationers are drawn tomountain accommodation market, which meets their desire for local tourism with good value for money. In this sector, MMV has successfully built a strong and recognizable brand and has become a key player in the operation of holiday clubs. Our ambition is to bring all our expertise to MMV in the pursuit of its accelerated growth and its differentiation.. This alliance represents a great opportunity to grow in the hotel sector and to realize our ambition to offer consistent packages to all European customers..”

Jean-Marc Filippini, President and co-founder of MMV added: “Associating with Compagnie des Alpes would allow MMV to continue to develop its activity, driven by a strong strategy aimed at perpetuating the promotion of French ski areas as tourist. We share the same vision with Compagnie des Alpes in terms of customer satisfaction and the development of a quality short-stay offer. Our offer is complementary to Compagnie des Alpes’ businesses, including the operation of ski resorts, the distribution of package stays, and its real estate agencies.”

[1]Sales forecast for2021/2022
[2]Forecast EBITDA 2021/2022 (pro forma)

This press release contains forward-looking statements regarding the growth prospects and strategies of Compagnie des Alpes and its subsidiaries (the “Group”). These elements include indications relating to the Group’s intentions, its strategies, its growth prospects and the evolution of its operating results, its financial situation and its cash. Although these indications are based on data, assumptions and estimates that the Group considers to be reasonable, they are subject to numerous risk factors and uncertainties such that actual results may differ from those anticipated or implied by these indications. due to multiple factors, in particular those described in the documents filed with the Autorité des marchés financiers (AMF) available on the Compagnie des Alpes website (www.compagniedesalpes.com). The forward-looking information contained in this press release reflects the orientations given by the Group on the date of this document. Unless there is a legal obligation, the Group expressly declines any commitment to update these forward-looking elements in the light of new information or future developments.

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