What was the amount of cash The Standardx paid for the Bahia Principe transaction?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Bahia Principe—During the year ended December 31, 2024, we completed the Bahia Principe Transaction (see Note 4) for €419 million of base consideration, including €60 million of deferred consideration payable at future dates. The consideration was subject to customary adjustments related to working capital, cash, and indebtedness, and we may pay additional variable contingent consideration through 2034 primarily related to the achievement of certain milestones for the development of additional hotels to be managed by the joint venture. The contingent consideration is payable at each hotel opening and is based on a multiple of stabilized base and incentive management fee revenues, and therefore, we are unable to reasonably estimate our maximum potential future consideration.
We closed on the transaction on December 27, 2024, paid cash of €359 million (approximately $374 million), and accounted for the transaction as a business combination as we are the primary beneficiary of the VIE (see Note 4). Upon acquisition, we recorded a $58 million deferred consideration liability at fair value, of which $20 million was recorded in accrued expenses and other current liabilities and $38 million was recorded in other long-term liabilities on our condensed consolidated balance sheet. The fair value was estimated using a discounted future cash flow model and includes assumptions and judgments regarding the discount rate, which is primarily a Level Three assumption. We also recorded a $33 million contingent consideration liability at fair value in other long-term liabilities on our condensed consolidated balance sheet. The fair value was estimated using a discounted future cash flow model and includes assumptions and judgments regarding the discount rate, estimated probability of achieving the hotel development milestones, and expected amount and timing of payments, which are primarily Level Three assumptions. Total purchase consideration wa
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company completed the Bahia Principe Transaction during the year ended December 31, 2024. The base consideration for this transaction was €419 million, which included €60 million of deferred consideration payable at future dates. The consideration was subject to customary adjustments related to working capital, cash, and indebtedness.
The Standardx paid cash of €359 million (approximately $374 million) for the Bahia Principe transaction. The transaction was accounted for as a business combination because The Standardx is the primary beneficiary of the VIE. Upon acquisition, The Standardx recorded a $58 million deferred consideration liability at fair value, with $20 million recorded in accrued expenses and other current liabilities and $38 million in other long-term liabilities on the condensed consolidated balance sheet.
Additionally, The Standardx recorded a $33 million contingent consideration liability at fair value in other long-term liabilities on its condensed consolidated balance sheet. This contingent consideration is primarily related to achieving certain milestones for the development of additional hotels to be managed by the joint venture. The fair values were estimated using a discounted future cash flow model, which includes assumptions and judgments regarding the discount rate.