Permira, Ardian take first steps towards eDreams IPO

Amy King
15 January 2014

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Permira and Ardian are considering an initial public offering of online travel company eDreams Odigeo this year in Madrid.

According to a source, banks have been appointed to oversee the process, though the event itself remains a way off.

Investment in travel and tourism reached its peak in 2013 with 37 transactions recorded – the strongest dealflow across a five-year sample, according to unquote" data. Deal volume has crept up steadily in the last three years, suggesting strong investor appetite for the sector.

The travel agent, which operates under the Opodo, Go Voyges, eDreams and Travellink brands, completed a refinancing in 2013, placing five-year secured bonds worth €325m to refinance its senior debt. Rumours regarding the IPO had emerged some months previously.

The GPs acquired online travel agent Opodo for €450m in 2011 from parent company Amadeus, according to unquote" data. Both private equity firms invested via their existing portfolio companies Go Voyages and eDreams, with a view to merge the entities and create an online travel agent with revenues of more than €1bn.

In 2010, Permira bought a majority stake in Spanish online travel agent eDreams from TA Associates, with reports placing the deal value at more than €250m. The GP approached the vendor and bought the company in a negotiated sale.

A consortium of investors led by Apax and Atlas Ventures committed around $20m to eDreams in 1999. The following year, 3i joined the duo and invested €16m in the firm.

TA Associates entered the firm's shareholding in 2006 in a €153m buyout, leveraged with senior debt from Fortis Bank and mezzanine from TA Funds.

Notable private equity deals in the travel and tourism space last year included Investindustrial's partial sale of tourist resort PortAventura to KKR and Graphite's sale of Park Holidays to Caledonia for £172m.