The group will buy the owner and manager of hotels for $7.375 a share, or $116.5 million. Bainum and his family already hold 46% of Sunburst. The buyout group also includes James A. MacCutcheon, Sunburst's chief financial officer, other Sunburst managers and members of the Bainum family.
Sunburst's chief executive, Donald Landry, said he will step down once the sale is completed. MacCutcheon becomes co-chief executive and will become president and chief executive after Landry's resignation.
Sunburst is the largest franchisee of Choice Hotels International Inc., which runs the Comfort Inn, Clarion Hotels, MainsStay Suites, Sleep Inn and Quality Inn hotel brands. In 1997, Choice spun off Sunburst to operate its branded hotels. Choice is also 39% owned by Bainum, who is chairman of the company.
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