NEW YORK, Oct. 1, 2018 /PRNewswire/ -- 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.
About Alleghany Capital Corporation
Alleghany Capital Corporation sources, executes, and oversees industrial and non-industrial investments and acquisitions for its parent company, Alleghany Corporation (NYSE:Y). Alleghany Capital's industrial businesses include: (i) Bourn & Koch, Inc., a manufacturer/remanufacturer of specialty machine tools and supplier of replacement parts, accessories and services for a variety of cutting technologies; (ii) R.C. Tway Company, LLC (dba Kentucky Trailer), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets; (iii) WWSC Holdings, LLC, a structural steel fabricator and erector for commercial, manufacturing, and transportation infrastructure projects; and (iv) Wilbert Funeral Services, Inc., a leading provider of products and services for the funeral and cemetery industries and precast concrete markets. In addition to Concord, Alleghany Capital's non-industrial businesses include: (i) IPS-Integrated Project Services, LLC, a design, engineering, procurement, and construction management company focused on the global pharmaceutical and biotechnology industries, and (ii) Jazwares, LLC, a global toy, entertainment and musical instrument company. For additional information about Alleghany Capital Corporation, please visit www.alleghanycc.com.
About Concord Hospitality Enterprises Company
As an award-winning hotel development and management company, Concord Hospitality Enterprises Company has spent the last three decades building relationships with investors, partners, and third-party hotel owners on more than $2.5 billion in premium-branded properties across the United States and Canada. As an operator, Concord Hospitality instills value from the ground up, developing and managing with a sustainable viewpoint, a focus on quality and hands-on involvement to ensure long-term profitability and success. Concord Hospitality believes that its people are its greatest strength. With the brightest talent, the most innovative processes and a commitment to giving back to the communities where associates live and work, Concord Hospitality is committed to being a great place to work for all. Learn more at www.concordhotels.com.
This release contains disclosures which are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. These forward-looking statements are based upon Alleghany's current plans or expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany's future financial condition and results. These statements are not guarantees of future performance, and Alleghany has no specific intention to update these statements. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by Alleghany or on Alleghany's behalf.
SOURCE Alleghany Capital Corporation