Hotels & Resorts Deals Make Biggest Splash in Southeast
March 14, 2012
Apollo Global Management has entered into a definitive agreement to acquire Great Wolf Resorts (NASDAQ: WOLF). Through a cash tender offer, Apollo intends to pay $5 a share—a 19% premium over Great Wolf's closing stock price on Monday. The offer values the company at approximately $703 million, including debt. Great Wolf operates 11 indoor waterpark resorts in North America. The company was advised by Deutsche Bank, while Apollo was advised by Morgan Stanley, UBS and Nomura Securities.
Since the beginning of 2005, PE investors have invested in 106 companies primarily involved in the Hotels and Resorts industry, according to the PitchBook Platform. With 15 completed deals in 2011, the industry is rebounding after a lull in 2008 and 2009, when only 7 deals were completed each year. The Southeast has accounted for 29% of this activity with a total of 35 completed deals since 2005, making it the most active U.S. region. Southern hospitality appears to prevail in this industry, with the Southeast and South regions accounting for a combined 44% share.