The group will buy the owner and manager of hotels for $7.375 ashare, or $116.5 million. Bainum and his family already hold 46% ofSunburst. The buyout group also includes James A. MacCutcheon,Sunburst's chief financial officer, other Sunburst managers andmembers of the Bainum family.
Sunburst's chief executive, Donald Landry, said he will stepdown once the sale is completed. MacCutcheon becomes co-chiefexecutive and will become president and chief executive afterLandry's resignation.
Sunburst is the largest franchisee of Choice HotelsInternational 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 isalso 39% owned by Bainum, who is chairman of the company.
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