Alleghany Capital Corporation announced it has bought a majority interest in Raleigh, North Carolina-based Concord Hospitality Enterprises Company. The exact percentage of interest and the price has not been announced.
NEW YORK, Oct. 1, 2018 -- Alleghany Capital Corporation ("Alleghany Capital"), a wholly-owned subsidiary of Alleghany Corporation, today announced that it has acquired a majority interest in Concord Hospitality Enterprises Company ("Concord"), a leading hotel management and development company headquartered in Raleigh, North Carolina. Founded in 1985, Concord manages over 100 properties and nearly 15,000 rooms across North America, working with leading brands including Marriott, Hilton, Hyatt, Choice, and InterContinental, as well as a diversified group of experienced hotel owners and investors.
David Van Geyzel, President and Chief Executive Officer of Alleghany Capital, stated, "Concord is one of the most reputable companies in the hospitality industry with a great culture and long history of working with its associate, brand, and owner partners to create the highest quality guest experiences. Our investment in Concord is consistent with Alleghany Capital's strategy of investing in durable platform companies in large fragmented sectors that would benefit from our long-term investment horizon, quasi-autonomous operating model, and ability to support entrepreneurial management teams with additional capital as they aim to accelerate growth. We are excited to partner with Mark Laport, Concord's President and Chief Executive Officer, and his dedicated team of approximately 5,000 associates, and we look forward to what we can all build together in the years to come."
"This transaction presents Concord with an exciting opportunity to continue to expand while remaining committed to the values that have guided us over the past three decades and have created our thriving culture," said Mark Laport. "At Concord, we believe in five cornerstones: delivering quality, living integrity, supporting community, growing profitability, and having fun. Alleghany Capital shares these values and its strategy of providing a long-term home to entrepreneurial businesses will allow us to further enhance our portfolio and execute on a robust pipeline of opportunities through initiating ground-up developments and building quality third-party partnerships. We are eager to work together with Alleghany Capital to build upon our proven model of success and continue to provide the service excellence that guests, partners, and other stakeholders have come to expect from Concord."
Udi Toledano, Chairman of Alleghany Capital, added, "In evaluating the hospitality market, we identified Concord as a unique and compelling platform which we could support as it continues to expand its market presence. As is the case with all of our acquisitions, day-to-day operations and the company's unique culture will not be impacted by the transaction. However, with the addition of Alleghany Capital's resources, we believe that Concord will be able to pursue an even greater set of opportunities."
RBI Advisors acted as financial advisor and Proskauer Rose LLP acted as legal counsel to Alleghany Capital. Morris, Manning & Martin, LLP acted as legal counsel to Concord.
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