29 September 2022, London – 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.”
Three Hills Capital Partners – Edelman Smithfield
Notes to Editors
About Borealis Hotel Group
Borealis Hotel Group, founded in 1997 and headquartered in Amsterdam, is a fast-expanding European hospitality company. Since its inception the company has been involved in the operation of hotels throughout Europe and has concluded transactions with an aggregate value of over EUR 3 billion. After the strategic divestment of the Vincent Hotel Group, Borealis continued building its present portfolio with the ambition to become a pan-European leader in the hotel industry. The group, backed by strong institutional investors, is led by Bart van de Kamp (founder), Lodewijk van der Meulen (co-founder), Jehoeda Schächter, and Pieter Moll who are supported by a strong management team with an extensive track-record. Today Borealis has hotels in the Netherlands, Belgium, France, Spain, Germany, and Austria and a secured pipeline across continental Europe. As one of the preferred partners of international brands like, Accor, Hilton, IHG, Marriott and Hyatt, Borealis has been a solid partner for investors, family offices and the likes. The group’s ambition is to continue growth by both initiating new hotel projects, conversions of existing hotels as well as portfolio add-ons to its platform.
About Bierwirth & Kluth
Bierwirth & Kluth Hotel Management (B&K), headquartered in Wiesbaden, Germany, is a group of companies specialising in hotel development and management. With its service portfolio, Bierwirth & Kluth offers solutions for investors, banks and private owners. Peter Bierwirth, Klaus Kluth, Petra Bierwirth-Schaal, and the rest of the management team are recognised experts and hoteliers with many years of experience in leading positions in the international hotel industry. The company currently operates twelve hotels in Germany and Austria with a total of more than 3,000 rooms, as well as the Science Congress Center in Munich-Garching. Further leased and managed hotels are currently under development.
About Atlantic Park
Atlantic Park is a strategic joint venture between General Atlantic, a leading global growth equity firm established more than 40 years ago, and Iron Park Capital Partners, a deeply experienced credit-focused asset manager. Atlantic Park provides capital solutions to address financing needs for high-quality companies seeking a trusted partner. Atlantic Park takes a broad industry focus and partners with companies spanning a number of sectors, including Consumer, Financial Services, Healthcare and Technology, with a focus on companies in the United States and Europe. For more information, please visit www.atlanticpark.com
About Three Hills Capital Partners
Three Hills Capital Partners is a pioneer in European structured capital, partnering with many of Europe’s highest quality entrepreneur-led businesses. By offering a flexible financing solution and value-add expertise, THCP supports business owners looking for capital whilst retaining control of their companies. With c.€2.5bn AUM, THCP is backed by a unique network of Europe’s leading industrial holdings, family offices and entrepreneurs, as well as global institutional investors. Alongside holding company Atypical Partner, THCP operates with a team of c.60 professionals across offices in London, Milan and Luxembourg.