EnGrande Transaction Case Study

NOAH Advisors partnered with EnGrande, exploring a range of strategic alternatives,
resulting in a highly successful outcome for all parties

NOAH Advisors Completed Transaction EnGrande

Deal Team

EnGrande:
John Erceg (founder and CEO)
Palamon Capital Partners:
Fabio Massimo Giuseppetti, Jaime-Enrique Hugas, Ricardo Caupers
Sponsor: Louis Elson
NOAH Advisors:
Marco Rodzynek, Jan Brandes, 
Yoram Wijngaarde

Overview of EnGrande

  • EnGrande S.L. (“EnGrande” or “the Company”) was established in 2003 by founder and CEO John Erceg to generate bookings for budget hotels and apartments
  • Following a period of rapid expansion across Europe and selected cities in America and Asia-Pacific, the Company now has more than 10,000 establishments worldwide directly contracted to its service and processes around €75 million of bookings per annum
  • EnGrande’s websites, which include www.budgetplaces.com, and a network of dedicated 30’s city websites, such as www.london30.com and www.amsterdam30.com, are aimed at cost-conscious, mostly European leisure and business travellers
  • The Company employs 130 staff and is headquartered in Barcelona with offices in New York and Dublin
  • The EnGrande team is passionate about finding new well-located, cheap and clean establishments,
    partnering with hoteliers to fill their rooms profitably with a unique easy-to-use backoffice system which
    offers maximum administrative efficiency

Transaction Rationale

  • The online accommodation bookings market has proven to be a massive opportunity. Gross bookings of the European hotel sector are estimated to total about €85 billion per annum, of which online bookings currently account for around €14 billion
  • The European budget accommodation sector itself is currently worth approximately €15 billion per annum and is rapidly growing, in part due to the expansion of low cost carriers
  • The fragmented nature of accommodation suppliers and their low online penetration presents EnGrande with a strong opportunity to accelerate the growth of its network of providers
  • A key part of the growth plan is a shared commitment to grow the platform to become the leader in the budget accommodation category
  • Palamon Capital Partners is a leading European mid-market private equity firms
  • The terms of the transaction were not disclosed

NOAH Advisor’s Role

  • EnGrande decided to partner with NOAH Advisors, following inbound interest to acquire the Company
  • EnGrande and NOAH Advisors worked together intensively on exploring a wide range of strategic alternatives, while the Company grew from strength to strength was able to scale its platform rapidly
  • NOAH Advisors acted as exclusive M&A financial advisor to EnGrande

EnGrande @ NOAH

This exclusive artwork has been specifically created for the celebration of this deal by Marco Bombach.
It was given as present to the EnGrande founder John Erceg.

Acrylic on Boxed Canvas
Image size: 81 x 100cm

Please click the image to enlarge.