Dec. 14 (UPI) -- Louis Vuitton is getting into the hotel business. Its parent company agreed Friday to buy Luxury hotel group Belmond in a deal worth $2.6 billion.
Louis Vuitton Moet Hennessy -- which owns fashion brands like Fendi and Louis Vuitton and champagne maker Dom Perignon -- will buy Belmond for $25 per share.
"This represents an equity value of $2.6 billion in a transaction with an enterprise value of $3.2 billion," the companies said in a joint statement. "In the 12 months ended Sept. 30, Belmond recorded total revenues of $572 million and adjusted of $140 million.
"The transaction is expected to complete in the first half of 2019 subject to the approval of Belmond's shareholders and clearance by the relevant competition authorities."
France-based LVMH already owns the the Bulgari hotel brand and Chevel Blanc, a collection of luxury properties. Belmond owns or manages 46 luxury hotel, restaurant, train and river cruise properties.
Belmond's properties include the Hotel Cipriani in Venice; Hotel Splendido in Portofino, Italy; Copacabana Palace in Rio de Janeiro; Le Manoir aux Quat'Saisons in Oxfordshire, England; Grand Hotel Europe in St. Petersburg, Russia; Maroma Resort & Spa in Mexico; Hotel das Cataratas in the Iguassu National Park in Brazil, and Cap Juluca in Anguilla.
In August, the Belmond board announced it had started a strategic review that put the company up for sale. It had rejected numerous takeover bids in the past.
Shares of Belmond increased on Friday's announcement.