Blackstone to acquire Hilton Hotels for $26 billion in all-cash deal.

Hilton Hotels Corporation has agreed to be acquired by Blackstone Investment Funds in an all-cash transaction valued at approximately $26 billion. Blackstone will pay $47.50 per share, a 40% premium over the previous day's closing price. The deal is expected to close in the fourth quarter of 2007.

Blackstone, a prominent private equity firm, is exploring the possibility of selling Clarion Events, a global event organizer, for a potential deal worth up to £2 billion ($2.7 billion), according to sources familiar with the discussions. The acquisition of Clarion by Blackstone in 2017 for £600 million ($809.79 million) has paved the way for its current growth trajectory.

Clarion Events, known for organizing events like ICE and iGB L!VE, has seen significant revenue growth, rising to £432.9 million ($584.26 million) by January 2024. The company's strategic moves, including the relocation of ICE to Barcelona and iGB L!VE's shift to London, have helped expand its audience reach and exhibitor participation. The gaming division, in particular, has played a pivotal role in this recovery, with the new venue for ICE in Barcelona offering more space and iGB L!VE aiming to grow to 30,000 visitors and 550 exhibitors by 2028 [1].

Private equity firms are reviewing the deal, with Hillhouse Investment showing early interest. Other firms like KKR, CVC, Ardian, and PAI Partners are also evaluating the opportunity. The estimated deal value is based on around 12 times Clarion’s EBITDA, although the transaction is not guaranteed to happen. If it does, it would be one of the biggest private equity exits in recent months [1].

Clarion’s financial performance has been bolstered by the return of events in Asia and tighter cost control. Revenue jumped from £257 million ($346.86 million) to £432.9 million ($584.26 million) in just one year, primarily due to renewed activity in China and Hong Kong. This improved performance has fueled investor confidence and Blackstone's readiness to proceed with the potential sale [1].

While Clarion Events is known for its gaming events, it also organizes events in industries like home design, consumer electronics, and defense, as well as the London International Horse Show.

References:
[1] https://igaming.org/casino-news/blackstone-considers-clarion-sale-worth-2-billion/