Last year Civen was one of the largest private equity deals in Spain: it bought Hotelbeds for €1165M. Now, 6 months later, Civen has managed to double the size of Hotelbeds by buying two companies: Tourico, which operates in the American market and GTA, which operates in the Asian market.
Civen and CPPIB Boost Hotelbeds
Hotelbeds Group, Palma-based bed bank and global B2B service provider to the travel industry, hotelbeds has experienced steady growth since it went public in 2003. In 2007 it was bought by German tour operator TUI and in September 2016 Civen and CPPIB bought hotelbeds for €1165M, with the aim of making it a leader in its sector.
"Civen already had experience in growing a company in the tourism sector, having invested in Amadeus in 2005. In 2010 Amadeus went public and in 2011 the last divestment of the funds in this company took place," says Diego Guiterrez, an expert in the tourism sector. corporate finance.
The aim of Civen at Hotelbeds was to increase the size of the company organically and at the same time to boost the company's mergers and acquisitions. In record time, 6 months after the entry of private equity, Hotelbeds, has closed the acquisition of two of its largest competitors, in order to grow in two key markets for the company: the US and Asia and the Middle East. These two acquisitions, worth around €1000M, have doubled the size of the company.
Hotelbeds buys Tourico to grow in the USA
In February 2017 Hotelbeds announced that it was to purchase Touricoone of its main competitors operating mainly in North America. The purchase also involved the acquisition of all subsidiaries: Tourico Holidays, Travel Holdings, Tourico Holidays Spain and the Israeli technology development subsidiary, T.G.S. Israel Development.
In addition, this purchase will allow the two companies to take advantage of existing synergies.
Hotelbeds buys GTA to grow in Asian market
GTA is the English wholesaler in the b2b tourism sector of Kuoni Group, which, as we announced in a post a few months ago, last year bought a company in the tourism sector in Mallorca (MTS)
Hotelbeds will take over the GTA subsidiaries, except for MTS Globe, which will be bought back by its previous owner.
GTA has a presence in Asia-Pacific and the Middle East, markets with a lot of potential in which Hotelbeds aims to grow.
Other posts that may interest you
UK-based GTA, which provides services to the tourism sector, has bought Mallorca-based MTS Globe.
IT sector M&A in tourism: Amadeus leads the way in tourism purchases
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