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Marriott buying ExecuStay
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January 6, 1999: 11:12 a.m. ET
Hotel chain paying $128M for leased corporate apartment provider
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NEW YORK (CNNfn) - Corporate apartment provider ExecuStay Corp. is checking in with Marriott International in a $128 million acquisition deal, ExecuStay said Wednesday.
Once the deal is completed, Marriott International (MAR) expects to call the acquired company ExecuStay by Marriott. The $128 million price includes cash, stock and assumed debt of about $13.5 million.
Public shareholders of Washington, D.C.-based ExecuStay (EXEC) will receive about $14 a share cash. The company's founders will receive about $13 in Marriott International common stock for each ExecuStay share they own.
Marriott plans to begin a tender offer for all outstanding shares of ExecuStay within the next five business days and expects to complete the transaction in March 1999. ExecuStay's founding leadership will continue to manage day-to-day operations with a team of Marriott executives.
ExecuStay is the second-largest provider of leased corporate apartments in the country, with 6,000 apartments in 44 states and the District of Columbia under contract with corporate clients and professionals.
ExecuStay has about $150 million in annual revenue and over 450 employees.
Marriott International, headquartered in Bethesda, Md., has about 131,000 employees and total sales for fiscal 1997 were $9 billion.
ExecuStay shares were up ¼ at 13-13/16 Wednesday morning.. Marriott International stock was up ¼ at 31-3/16. 
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