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$110 Million Deal Will Create Diversified and Expanding Company to Service Rapidly-Growing Indian Travel & Leisure Market
June 19, 2007 - (New York, NY) - Proskauer Rose LLP, an international law firm with over 700 lawyers worldwide, has represented India Hospitality Corp. in its agreement to acquire Mars Restaurants Private Limited, an India-based emerging hotel and restaurant company, and SkyGourmet Catering Private Limited, an Indian airline catering company, from affiliates of private equity firm Navis Capital Partners and certain private shareholders for approximately $110 million.
The deal will create a diversified hospitality company servicing the rapidly-growing Indian travel and leisure marketplace. Mars Restaurants operates two Gordon House Hotels, a modern four-star hotel chain catering to both the Indian business and high-end leisure travel markets, in addition to a diversified portfolio of restaurants with eight primary brands. SkyGourmet currently operates from four locations in India and plans to expand to up to 12 by 2009.
Under the terms of the acquisition agreement, the sellers of Mars Restaurants and SkyGourmet will receive approximately $110 million, of which approximately $91.6 million will be payable in cash with the remainder in India Hospitality ordinary shares on completion of the transaction. Additional consideration may become payable in cash if the businesses achieve certain performance targets.
The acquisition agreement is the latest deal Proskauer has been involved with in the lodging and gaming sector. Other recent transactions include the firm's representation of The Lightstone Group in its $8 billion acquisition of Extended Stay Hotels, and representing Accor in its agreement to sell Red Roof Inns to Citi Global Special Situations Group and Westbridge Hospitality Fund for $1.32 billion.
The Proskauer team representing India Hospitality was led by Jeffrey Horwitz, co-chair of the firm's Lodging and Gaming Group, and included Rima Moawad, Solomon Warhaftig, Frank Lopez, Ronald Palmese, Jr., Nishant Singh, Sharon Haberman, Stephen Devaney, Ben Von Klemperer, and Orrin Levine.
Proskauer's Lodging and Gaming Group takes a multidisciplinary approach to the lodging and gaming business. The firm draws on experience across all key areas involved in evaluating, negotiating and structuring deals including corporate, real estate, labor, litigation and dispute resolution, environmental, benefits, tax, bankruptcy, and intellectual property. Proskauer's commitment to the hospitality industry is unparalleled among major national firms. The group regularly represents clients around the world including in Asia, the Caribbean and Europe.
About Proskauer Rose
Proskauer Rose, founded in 1875, is an international law firm providing a wide variety of legal services to clients worldwide from offices in Boca Raton, Boston, Chicago, Hong Kong, London, Los Angeles, New Orleans, New York, Newark, Paris, São Paulo, and Washington, D.C. The firm has wide experience in all areas of practice important to businesses and individuals including corporate finance, mergers and acquisitions, general commercial litigation, corporate governance matters, conducting internal corporate investigations, white collar criminal defense, private equity and fund formation, patent and intellectual property litigation and prosecution, labor and employment law, real estate transactions, bankruptcy and reorganizations, trusts and estates, and taxation. Its clients span industries including chemicals, entertainment, financial services, health care, information technology, insurance, internet, lodging and gaming, manufacturing, media and communications, pharmaceuticals, real estate investment, sports, and transportation. The firm can be found online at http://www.proskauer.com.
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