UK private equity house Duke Street Capital is reportedly in advanced negotiations with French budget hotels operator, Galaxie, in a deal that could value the business at up to E200m.
According to The Times newspaper, Galaxie, which operates 70 one star hotels in cities such as Paris, Nice and Marseilles, has until February 12 to respond to the offer.
Co-founder and executive chairman, Francois Branelle, is Galaxie’s main shareholder, with the rest of the company owned by institutions including Crédit Mutuel, the French bank.
Duke Street has been active in the French buyout market for some time. Recent transactions completed by the firm in France include the acquisition by Duke Street’s portfolio company Marie Brizard & Roger of Les Chais Beaucairois, a specialist wine producer for E22.6m.
In the UK, Duke Street has recently been linked to a possible takeover of spread-betting company IG Index. A spokesperson for Duke Street confirmed the firm’s interest in IG, particularly the sports betting business.
The firm would not, however, be drawn on developments regarding Galaxie.