French fashion house and luxury retail company Louis Vuitton Moet Hennessy (LVMH) announced that it will acquire UK-based hospitality company Belmond.

LVMH will pay 2.5 billion pounds ($3.14 billion) for Belmond shares at a price of $25 per share, resulting in a 40 percent premium.

The deal, which is expected to close in the first half of 2019, values Belmond's equity at $2.6 billion, excluding debt.

In the 12 month period ending on September 30, Belmond booked $572 million in revenue and earnings before interest, taxes, depreciation and amortization at $140 million.