Montefiore Investment buys QCNS Cruise from Duke Street

Alice Tchernookova
23 May 2017

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Montefiore Investment has taken a majority stake in Monaco-based QCNS Cruise Europe, taking over from Duke Street.

According to various sources, the stake acquired by Montefiore could amount to around 80%. The shares were acquired from QCNS founder Pascal Euvrard and from Duke Street. The balance (20%) will go to management.

Duke Street bought a majority stake in the group in 2011 alongside minority co-investor Kings Park Capital.

QCNS adds to the list of Montefiore investments in the tourism sector, with the GP having previously backed Voyageurs du Monde, MisterFly, European Camping Group, B&B Hotels and others.

Last year, the GP closed its latest investment vehicle, Montefiore Investment IV, on its €420m hard-cap. The fund targets French SMEs in the private and B2B services sector, as well as those providing health and education services. Target companies typically have a turnover within the €20-200m range and an EBITDA of €3-30m. Equity tickets typically start from €10m and can go up to €50m, or €150m in case of co-investments.

Between 2011-2016 (during Duke Street's and Kings Park Capital's ownership), the group's sales increased from €110m to €128m. With Montefiore's support, QCNS will focus on its internationalisation and the development of its online offering.

According to a source familiar with the matter, the cruise company would like to expand its customer base from 130,000 to 200,000 by 2020, and see its turnover increase to €180-190m, compared to €128m at present.

The deal should be completed by the end of July, according to Montefiore.

Previous funding
In 2011, Duke Street and Kings Park Capital acquired a majority stake in QCNS. Duke Street, which was investing from its Duke Street Capital VI fund at the time, acquired a large majority stake.

A debt package comprising two thirds senior debt to one third mezzanine was secured to support the transaction. The debt-to-equity ratio stood at 45%.

Company
Founded in 2005 and based in Monaco, QCNS is an online travel agency specialising in the sale of cruises in France, Spain and Italy. The group sells its cruise packages via different websites, such as croisierenet.com and croiseres.fr, and through telephone bookings.

QCNS claims to cater for around 130,000 passengers a year, with 50% of its clients based in France and the rest abroad. The group employs 270 people and reported sales of €128m in 2016.

People
Montefiore Investment – Daniel Elalouf (managing director).
Duke Street – Didier Bismuth (partner); Martin Robinson (operating partner).