#USA #H.I.G. Capital #London #Ella Resorts #OB Streem

H.I.G. Capital's Major Investment Moves in Europe

In a landmark announcement, H.I.G. Capital, a prominent global alternative investment firm with assets under management totaling $74 billion, has successfully completed a significant recapitalization worth $1.6 billion for its subsidiaries, Ella Resorts and OB Streem. This move not only underscores H.I.G.'s confidence in these ventures but also positions them for extensive growth in the competitive European market.

Overview of the Companies

Ella Resorts

Ella Resorts serves as H.I.G.'s hospitality division, focusing on developing high-quality resort destinations primarily in the Mediterranean region. Currently, it boasts a portfolio of around 4,400 hotel rooms. With ambitions to expand to 10,000 rooms, Ella has a robust pipeline of acquisitions lined up in Italy, Greece, and Spain, marking a strategic push to enhance its presence in some of Europe's most appealing tourist markets.

OB Streem

On the logistics side, OB Streem operates a fully integrated platform managing over 400,000 square meters of warehouse space. The company provides critical logistics infrastructure along major European trade corridors, which includes temperature-controlled storage, conditioned warehouses, and storage for container depots. Furthermore, OB Streem is planning to launch a new pier terminal, enhancing its service offerings which include expedition and transport solutions.

Strategic Implications of the Recapitalization

The recent transactions are designed to create a more efficient capital structure for both Ella and OB Streem. They are set to fuel ongoing renovations and repositioning of Ella’s resort portfolio while expanding OB Streem's logistical infrastructure network and facilitating new acquisitions.

The recapitalization has been led and underwritten by the Bank of Piraeus, alongside participation from other leading European financial institutions. This backing speaks volumes about the confidence of the banking syndicate in the long-term growth prospects of both platforms, which are categorized as essential drivers within the European economy.

Statements from Leadership

Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe, commented on the milestone by stating, “The successful completion of these two recapitalizations marks a pivotal moment for two critical platforms under H.I.G. Realty in Europe. We remain committed to acquiring and scaling real estate platforms in sectors with robust fundamentals, leveraging our combined expertise in real estate and private equity.”

Stelios Theodosiou, another Managing Director at H.I.G. Realty in Europe, added, “With these successful recapitalizations, both Ella and Streem are entering a new phase of development. Streem will continue to strengthen its position and dominance in the local market, while Ella will expand internationally into Italy and Spain. The strong support from institutional lenders reflects the quality of the platforms we have built and enables us to keep investing in our assets and grow in a capital-efficient manner.”

About H.I.G. Capital

Founded in 1993, H.I.G. Capital has made investments in more than 400 companies worldwide, with its current portfolio comprising over 100 companies generating a collective revenue exceeding $53 billion. The firm specializes in providing debt and equity capital to middle-market companies through a flexible and operationally focused value-added approach. H.I.G. is headquartered in Miami, with additional offices across major US cities including Atlanta, Boston, Chicago, Los Angeles, New York, San Francisco, and Stamford, as well as international branches in prominent global cities such as Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, Dubai, and Hong Kong.

Overall, the recapitalization of Ella Resorts and OB Streem marks a strategic enhancement of H.I.G. Capital's portfolio, setting the stage for further investment initiatives that aim to bolster these companies' market positions in their respective fields.