Thursday, September 29, 2022
THCP and Atlantic Park announce add-on acquisition for Borealis Hotel GroupPortfolio Insight
Three Hills Capital Partners (“THCP”) and Atlantic Park Strategic Capital Fund (“AP” or “Atlantic Park”) are pleased to announce that Borealis Hotel Group (“Borealis”), a leading hospitality group headquartered in the Netherlands, has acquired Bierwirth & Kluth (“B&K”), a hotel operator and manager operating in the DACH region. To finance the acquisition, Borealis and existing investor THCP have signed an agreement with AP, who will also invest in Borealis. In connection with this transaction, Matthew Bonanno, Managing Director at AP, and Varun Bahri, Principal at Iron Park Capital Partners, have joined Borealis’ Board of Directors.
B&K represents a highly attractive bolt-on for Borealis, owing to the complementary nature of the two portfolios and the attractive market dynamics within the hospitality sector. Founded in 1998 by Peter Bierwirth and Klaus Kluth, B&K is a white-label hotel operator that now has preferred franchise partnerships including brands such as Marriott and IHG. The combined group creates a sizeable, pan-European player, with a footprint of over 30 hotels across the region.
THCP specialises in providing tailored capital solutions to high-quality European mid-market companies led by experienced entrepreneurs. Since investing in Borealis in 2019, THCP has worked closely with the management team to drive the business’ domestic and pan-European expansion strategy, developing hotels in the Netherlands and Belgium. THCP and AP plan to support additional M&A opportunities for Borealis in the future as it seeks to to build its portfolio.
AP is a joint venture between two investment platforms, General Atlantic, a global growth equity investor, and Iron Park Capital Partners, a global alternative investment manager. AP provides strategic capital to address the financing needs of companies seeking a strategic partner, working with companies across a wide cross sector of the global economy.
Bart van de Kamp, CEO and founder of Borealis Hotel Group, commented: “We’re excited to bring B&K into our group. Together we hope to work towards our vision of bringing our unique hospitality experiences to more customers across the continent, establishing Borealis as a leading hotel group. THCP have been instrumental in facilitating our growth through financing and operational expertise, and we look forward the additional support of our new partner, Atlantic Park.”
Leks de Boer, Partner at THCP, said: “This transaction represents a positive step forward in Borealis’ growth journey towards becoming a leading European hotel platform, and THCP is delighted to work alongside AP to support the company’s expansion. We believe Borealis has a strong pipeline of further growth opportunities and we are excited for the next chapter ahead.”
Matthew Bonanno, Managing Director at Atlantic Park, commented: “With its position in European hospitality and robust pipeline of M&A opportunities, we believe Borealis is well-placed for expansion, and we’re thrilled to be partnering with the company and THCP. B&K is exactly the type of strategic acquisition we look to support – its presence across the DACH region is a complement to Borealis’ existing portfolio and cements the strength of the group’s brand.”