EVT shares gain on Pro-invest Hotels acquisition
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More news: EVT shares were higher after morning trade after the Event Cinemas owner announced the $74 million buyout of third-party hotel management company Pro-invest Hotels.
Shares were up 1.9% to $17.83 at 12:10pm AEST, having gained around 57% since the turn of the year.
EVT acquires Pro-invest Hotels for $74m
The news: Cinema and hospitality group EVT has acquired third-party hotel management company Pro-invest Hotels for $74 million.
The numbers: EVT said it will also pay an additional scaled consideration of up to $30 million, if earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the 2025 and 2026 calendar years is higher than management's current expectations.
The deal will see EVT acquire 100% of the issued share capital in Pro-invest's four entities, two of which are incorporated in Australia, with the other two incorporated in New Zealand.
Pro-invest has 15 long-term hotel management agreements under third-party brands with around 3,200 rooms across Australia and New Zealand.
EVT expects the acquisition to deliver incremental normalised EBITDA of $8 million to $9 million per year, including synergies.
The context: EVT said the acquisition, which is subject to regulatory approvals, is expected to be completed in late 2025 or early 2026.
The purchase will seed EVT's new third-party hotel brand management model, EVT Connect Hospitality, which was also announced this morning.
EVT Connect Hospitality will form part of EVT's travel division, providing management solutions to hotel owners seeking to franchise a third-party brand.
The source: ASX
