By Colin Kellaher
European private-equity firm PAI Partners on Monday said it holding exclusive talks to sell its B&B Hotels budget hotel chain to Goldman Sachs Group merchant-banking division.
Financial details weren't disclosed, but the Financial Times, citing a person familiar with the deal, earlier reported that the proposed transaction is valued at 1.9 billion euros ($2.1 billion), which would leave PAI with a return of close to three times its initial investment.
PAI said it expects to complete the sale of B&B, which operates 486 budget with a total capacity of 42,832 rooms across 12 countries, in the second half of the year.
Paris-based PAI acquired B&B from Carlyle Group L.P. (CG) and Montefiore Investment in March 2016. The private-equity firm, which manages EUR12.3 billion of dedicated buyout funds, said a sale of B&B would mark the fourth exit from its PAI Europe VI fund.
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