Lone Star Funds has received shareholder approval to acquire hotel owner and operator Lodgian Inc. (NYSE: LGN) for approximately $270 million (including assumed debt). Under terms of the agreement, Lodgian stockholders would receive $2.50 per share.
Lodgian, Inc. (NYSE Amex Equities: LGN), one of the nation’s largest independent hotel owners and operators, announced that at the special meeting of Lodgian’s stockholders held today, the stockholders voted to adopt the merger agreement entered into by Lodgian with LSREF Lodging Investments, LLC (“LSREF”) and LSREF Lodging Merger Co., Inc., affiliates of Lone Star Funds, and approve the merger pursuant to which Lodgian will be acquired by LSREF.
The proposed merger was announced on January 22, 2010 and is anticipated to close on April 19, 2010, subject to satisfaction of various closing conditions of the parties pursuant to the terms of the merger agreement. Under the terms of the merger agreement, Lodgian stockholders will receive $2.50 per share in cash, without interest and less any applicable withholding taxes, in exchange for each share of common stock held. Upon closing of the transaction, Lodgian anticipates that its common stock will be de-listed from the NYSE Amex.
About Lone Star Funds
Lone Star is a global investment firm that acquires debt and equity assets including corporate, commercial real estate, single-family residential, and consumer debt products, as well as banks and asset-rich operating companies requiring rationalization. Since the establishment of its first fund in 1995, the principals of Lone Star have organized private equity funds totaling approximately $24 billion of capital that has been invested globally through Lone Star‘s worldwide network of affiliate offices.
Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. Lodgian currently owns and manages a portfolio of 27 hotels with 5,230 rooms located in 18 states. Of Lodgian’s 27-hotel portfolio, as of today, 13 are InterContinental Hotels Group brands (Crowne Plaza and Holiday Inn), 8 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott and Residence Inn by Marriott), two are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham, and Carlson. For more information about Lodgian, visit Lodgian’s website: www.lodgian.com.