KKR to acquire Travelopia from TUI in €381m deal

Kenny Wastell
14 February 2017

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KKR has agreed to acquire UK-headquartered specialist travel group Travelopia from trade vendor TUI Group in a deal giving the business an enterprise value of тЌ381m.

The vendor said the deal values the business at 7.7x its underlying EBITDA, based on pro forma figures of disposed entity on 30 September 2016.

KKR stated it will look to support an international expansion strategy for Travelopia, with a particular focus on the Chinese market. It also intends to capitalise on the increasing mobility of older travellers, in addition to a wider consumer trend for increased spending on leisure activities. Additionally, the business will look to invest in the development of its online platform, unquote" understands.

The GP has a track record of investing in the travel sector. Notable European deals include the acquisition of a 49.9% stake in tourist resort PortAventura in December 2012; the secondary buyout of train ticketing website Trainline in January 2015; and leading a $50m round for travel activity booking platform GetYourGuide in November 2015.

KKR is currently investing from its fourth European buyout fund, which held a final close in December 2015 at around the $3.7bn mark.

TUI's disposal of its Travelopia division forms part of the trade vendor's strategy to focus on its hotel and cruise brands. The deal is subject to regulatory approval.

KKR declined to comment on details related to the debt package associated with the deal.

Company
Headquartered in Crawley, West Sussex, Travelopia is a provider of specialist holidays, such as sailing trips, sports tours, school expeditions, private jet travel and polar expedition cruises. The group incorporates 53 brands – including Zegrahm Expeditions, Masterclass Sports Tours, The Moorings Yacht Charters and Europe Express – serving a total of 70 global destinations.

The business generated underlying EBITDA of €50m in the year ending September 2016, according to a statement issued by the vendor.

People
KKR – Mattia Caprioli (member, head of services); Edouard Pillot (director, head of business services).
Travelopia – Will Waggott (CEO).
TUI Group – Fritz Joussen (CEO).

Advisers
Equity – Catalyst Partners (corporate finance); Rothschild (corporate finance); Simpson Thacher & Bartlett (legal); Dentons (legal); Deloitte (financial due diligence); EY (financial due diligence).