Highgate and Cerberus Capital Acquire CorePoint Lodging for $1.5B

CorePoint Lodging Inc., a select-service hotel owner focused on the midscale and upper-midscale segments, entered into a definitive agreement to be acquired through a joint venture between affiliates of Highgate and Cerberus Capital Management LP. Under the terms of the merger agreement, Highgate and Cerberus will acquire all outstanding shares of CorePoint common stock in an all-cash transaction.

The transaction is valued at $1.5 billion based on the $15.65 per share consideration, which reflects the assumption of current net debt and a $160 million buyer liability reserve for an Internal Revenue Service matter. This price represents a premium of 42 percent to CorePoint’s closing share price on July 13, 2021, the last trading day prior to the company’s public announcement of its strategic alternatives process.