Karavel-Promovacances (France) - Oct 2007

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01 October 2007

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Barclays Private Equity (BPE) has backed the buyout of tour operator Karavel-Promovacances from travel group Opodo, in a deal valuing the company at approximately €100m. As part of the agreement, BPE took a majority stake in the company, while management and 475 members of staff are to be given the opportunity to co-invest. Mezzanine provider Euromezzanine may also invest in equity.

Sourcing

Opodo, which is owned by Amadeus (itself backed by Cinven and BC Partners), decided to sell Karavel- Promovacances as part of a re-orientation towards selling flights only. Deutsche Bank was mandated to run a selection process, which sparked interest from both industrial and financial bidders, among which were Duke Street Capital and Cinven.

Financing

Fortis Banque underwrote a two-tranche €30m senior debt package, while Euromezzanine provided a mezzanine facility. Both a LBO or a trade sale to a tour operator with a small online presence were cited as possible exit routes.

Company

Karavel-Promovacances sells a holiday packages on the internet. The company’s websites, which offer weekend deals, longer holidays as well as flights to more than 200 destinations, attract three million unique visitors per month. The group generated sales of €265m in 2006, and is hoping to outperform this sector by achieving annual double-digit growth during the next few years. The business will look to offer a wider range of destinations and to provide more specialised trips such as sport-oriented or honeymoon packages. Karavel-Promovacances employed 500 staff in 2006.

People

Guillaume Jacqueau, Julie Lorin and Thierry Lardinois worked on the deal for Barclays Private Equity. Pauline Godillot and Pierre-Louis Nahon arranged the debt for Fortis Banque, while François Carré and Ajit Jayaratnam prepared the financing from Euromezzanine. Alain de Mendonça is Karavel-Promovacances’s founder and CEO.

Advisers

Debt - Gide Loyrette Nouel, Mary Serhal (Legal)Equity - ACBS, Bertrand de Sailly (Insurance Due Diligence)Equity - Ernst & Young, Francois Anterieu (Financial Due Diligence)Equity - Ernst & Young, Anne-Valérie Attias-Assouline (Tax)Equity - Ernst & Young, Bruno Despujol, George Vialle, Olivier Wyman (Other Due Diligence)Equity - SJ Berwin LLP, Colin Millar, Maxence Bloch, William Robert (Legal)Equity - SJ Berwin LLP, Fanny Combourieu, Patrick Guarda (Other Due Diligence)Vendor - Deutsche Bank, Javier Echavarri, Javier Rapallo (Corporate Finance)Vendor - Linklaters, Alexandre Piette, Betrand Cardi , Emilie Honoré, Oilivier Huygues Despointes (Legal)