SPARTANBURG, SC— Extended Stay America (ESA) here has reportedly agreed to be acquired by New York private equity firm The Blackstone Group for more than $1.9 billion. ESA was cited as noting Blackstone would pay $19.625 per share for the company— a 24% premium over the extended-stay lodging organization’s closing share price of $15.81 last Friday. It was further noted a source familiar with the deal said Blackstone would pay cash for the stock. ESA’s board has already reportedly approved the takeover. ESA reportedly valued the entire deal— including the assumption of debt— at more than $3.1 billion. The company had 97.1 million shares outstanding at the end of last year. It was contended the deal is expected to close in the second quarter, and it would put ESA in a division managed by Homestead Studio Suites— another Blackstone company, which owns 132 extended-stay hotels. Reports similarly maintained Extended Stay America would keep its brand name following the acquisition. It was claimed that— at presstime— ESA operates 475 hotels in 42 states. The hotel company went public in December of 1995, and shares of the company are reportedly up some 54% over the course of the last 52 weeks. SOURCE: Reuters
