Dalata is set to enter a new phase of growth following its €1.4 billion acquisition by a consortium of Pandox and Eiendomsspar.
Teaser: The deal could elevate Dalata’s brand profile across key markets, particularly in Northern Europe where Pandox already has a strong presence.
The offer of €6.45 per share, which represents a 35.5 per cent premium to the company’s share price prior to the announcement, comes at a time when Dalata has been exploring ways to expand its European footprint and increase its market share across key regions.
The hotel group launched a strategic review earlier this year to explore options including a potential sale of the company, noting that while the group offers an attractive investment proposition, it faces structural challenges including its relatively small scale in a public market context, a relatively concentrated shareholder register, a constrained capital base and a share price which it said doesn’t accurately reflect its fundamentals.
The acquisition is expected to close in the fourth quarter of 2025. Once completed, Dalata will become a wholly-owned subsidiary of Pandox Ireland Tuck Limited, a newly incorporated company controlled by Pandox and Eiendomsspar. Pandox’s operating partner Scandic Hotels Group AB will be an operating partner for the existing Dalata portfolio.
Why it matters
Pandox and Eiendomssparr’s offer not only provides immediate value to Dalata shareholders but has the potential to accelerate the company’s growth trajectory, especially at a time when Dalata has been looking for ways to push and expand its presence across Europe. The acquisition offers Dalata a chance to plug into a broader European network and the deal could elevate its brand across key markets, particularly in Northern Europe where Pandox already has a strong presence.
What they said
Liia Nõu, CEO of Pandox said: “Dalata’s portfolio will further expand Pandox’s footprint and will contribute positively to the overall quality of Pandox’s hotel property portfolio. Through this cash flow and value-accretive transaction we will also deepen our already strong partnership with Scandic Hotels Group, which is based on operational and commercial excellence.”
Christian Ringnes, chairman of Eiendomsspar added: “As the largest shareholder in Pandox and a joint offeror, we are enthusiastic about the acquisition of Dalata, which we view as one of the finest hotel companies in Northern Europe. We believe the combined forces of Pandox, Dalata and Scandic Hotels will provide strength and be a source of significant value creation.”
Dermot Crowley, CEO of Dalata added: “This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform and will further accelerate our growth. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”
John Hennessy, chair of Dalata added: “The board unanimously believes that it is the right path forward for all stakeholders, and that it positions the business strongly for its next phase of growth under new ownership.”