British Company Agrees to Buy Hilton International

LONDON â€”  A British company known more for gambling than hotels announced agreement today to buy Hilton International Co. for $1.1 billion in cash, the latest in a spate of British acquisitions of U.S. companies.

Ladbroke Group PLC is buying the 91-hotel chain from Allegis Corp., which wants to sell off its non-airline businesses. The Chicago-based Allegis is the parent of United Airlines, the Hertz car rental system and Hilton International and Westin International hotels.

Hilton International is not related to Hilton Hotels Corp. of Los Angeles, a publicly owned company that operates Hilton hotels in the continental United States.

The purchase of Hilton International catapults Ladbroke into the big league of the hotel industry with a world-famous brand name and a combined 153 hotels.

Ladbroke, a London-based conglomerate with interests in betting, hotels, travel, property development and retailing, said it will finance the acquisition by raising about $420 million through a stock sale and the rest from bank loans.

Ladbroke announced last week that it was interested in acquiring Hilton International, which was pursued by several suitors.

“To have secured Hilton at a reasonable price is a great coup for Ladbroke,� Ladbroke Chairman Cyril Stein said.

Spurred by the weaker dollar, British bidders have been snapping up American targets at an increasing rate in recent months.

Hilton International’s top management has agreed to stay on, Ladbroke said.

Ladbroke will make Hilton International’s marketing emphasis more worldwide, rather than focusing on Americans traveling abroad as Hilton International has tended to do, a spokesman said.