{"id":5874,"date":"2016-05-10T10:00:09","date_gmt":"2016-05-10T02:00:09","guid":{"rendered":"http:\/\/primer.com.ph\/blog\/?p=5874"},"modified":"2016-05-10T17:38:20","modified_gmt":"2016-05-10T09:38:20","slug":"cinven-and-cppib-reach-agreement-to-acquire-hotelbeds-group","status":"publish","type":"post","link":"https:\/\/primer.com.ph\/blog\/2016\/05\/10\/cinven-and-cppib-reach-agreement-to-acquire-hotelbeds-group\/","title":{"rendered":"Cinven and CPPIB reach agreement to acquire Hotelbeds Group"},"content":{"rendered":"

\u2022 European private equity firm Cinven and Canada Pension Plan Investment Board (CPPIB) today announce an agreement to acquire Hotelbeds Group.<\/span><\/p>\n

\u2022 Hotelbeds\u2019 highly experienced management team, led by Joan Vil\u00e0, CEO, to remain at the helm of the business.<\/span><\/p>\n

\u2022 Cinven and CPPIB to partner with the management team to strongly position the business for fast growth together with its industry partners.<\/span><\/p>\n

London, UK and Toronto, CANADA <\/strong>— European private equity firm Cinven and Canada Pension Plan Investment Board (\u2018CPPIB\u2019) recently announced an agreement to acquire Hotelbeds Group (\u2018Hotelbeds\u2019 or the \u2018Company\u2019), the global provider of travel services based in Spain, from Tui Group for a total enterprise value of \u20ac1.165 billion.<\/span><\/p>\n

Hotelbeds is the largest independent business-to-business (\u2018B2B\u2019) bedbank globally, offering hotel rooms to the travel industry from its inventory of 75,000 hotels in over 180 countries to its customer base across more than 120 source markets. In addition to hotel accommodation, the Company provides transfers, excursions and tours, meetings and events, visa processing outsourcing and cruise handling services. Hotelbeds\u2019 main clients are tour operators, travel agencies, corporate clients and consumers.\u00a0\u00a0\u00a0<\/span><\/p>\n

The Bedbank business, which generates the majority of the Company\u2019s profitability, has demonstrated double digit volume growth in both its hotel portfolio and room nights over the past five years. Headquartered in Palma de Mallorca, the Group was established in 2001 and employs 6,150 people worldwide.<\/span><\/p>\n

Cinven and CPPIB believe Hotelbeds is an attractive investment opportunity on the basis of:<\/span><\/p>\n

\u2022 Strong financial performance with double digit total transaction value (\u201cTTV\u201d) growth in the Bedbank business over the last five years;<\/span><\/p>\n

\u2022 Strong underlying market growth supported by an expected increase in global hotel bookings;<\/span><\/p>\n

\u2022 Hotelbeds\u2019 highly experienced, proven management team, led by Joan Vil\u00e0, CEO, with an outstanding track record of driving organic growth in both its hotel supply and customer base;<\/span><\/p>\n

\u2022 Market consolidation opportunities in Europe, Middle East, Asia and the Americas given market fragmentation and potential for further margin improvement through economies of scale;<\/span><\/p>\n

\u2022 Opportunity to improve bedbank distribution via travel agents and tour operators – particularly in emerging economies – via investment in its sales and contracting team, as well as investment in R&D and IT systems to improve customer efficiencies and services.<\/span><\/p>\n

Cinven has a strong track record in the travel technology business, following its successful investment in Amadeus, the leading provider of advanced technology solutions for the global travel industry, which invested more than \u20ac1 billion in R&D and doubled EBITDA during Cinven\u2019s ownership, generating a return of 7 times.<\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

Commenting on this transaction, Jorge Quemada, Partner at Cinven, said:<\/strong><\/span><\/p>\n

\u201cHotelbeds Group is a strongly performing business with the largest accommodation distribution network within the overall B2B bedbank market offering broad client reach globally. We believe there are considerable growth opportunities through further investment in IT \u2013 as we did successfully with another global business based in Spain, Amadeus; growth in Asia and other markets \u2013 supported by our Hong Kong-based portfolio team; and market consolidation as the wholesale accommodation market remains highly fragmented.\u201d<\/em><\/span><\/p>\n

\u201cHotelbeds is run by a highly experienced and skilled management team, led by CEO, Joan Vil<\/em>\u00e0, whom we are looking forward to working with, along with our partner, CPPIB.\u201d<\/em><\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

Shane Feeney, Managing Director, Head of Direct Private Equity, CPPIB, said:<\/strong><\/span><\/p>\n

\u201cHotelbeds is a unique opportunity to invest in the leading operator within the hotel accommodation distribution market, an industry which has strong long-term prospects that will support continued growth. Backing a best-in-class management team, with an exceptional track record of organic growth that we will support in driving industry consolidation in the coming years, provides a terrific opportunity for CPPIB.\u201d<\/em><\/span><\/p>\n

\u201cWe look forward to working with our long-standing partner Cinven, and Hotelbeds\u2019 strong management team to continue to grow and build further value for the business.\u201d<\/em><\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

Chris Good, Senior Principal at Cinven, added:<\/strong><\/span><\/p>\n

\u201cHotelbeds has demonstrated exceptional growth and built an outstanding market position as a result of its market-leading proprietary technology and strong customer and supplier relationships. Its focus on diversifying into new market segments is proving highly successful and generating impressive growth rates in all of its new ventures.\u201d<\/em><\/span><\/p>\n

\u201cThis investment perfectly illustrates how the Cinven team has been able to combine its sector and regional team capabilities working across our Business Services and TMT teams, along with our German and Iberian colleagues, to identify and execute this transaction.<\/em>\u201d<\/em><\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

\"Picture1\"<\/p>\n

Joan Vil\u00e0, CEO of Hotelbeds Group, commented:<\/strong><\/span><\/p>\n

\u201cWe are excited about Cinven and CPPIB\u2019s investment in Hotelbeds which will enable us to continue improving the quality and range of services we provide to customers as a financially solid, independent and scalable bedbank operator.\u201d<\/em><\/span><\/p>\n

\u201cThe Bedbank segment continues to grow fast and with the backing of Cinven and CPPIB we will be well placed to invest more strongly than ever in technology, innovation and distribution. We look forward with anticipation to supporting the growth of our trade partners in this next stage of our development.\u201d<\/em><\/span><\/p>\n

The transaction is subject to customary approval from the relevant regulatory authorities.<\/span><\/p>\n

Advisors on the transaction included: Bain & Co. (commercial); Freshfields (legal); Lazard, Morgan Stanley, HSBC and PwC (M&A); Deloitte (tax); PwC (financial, labour and IT)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This is a press release from Hotelbeds Group<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u2022 European private equity firm Cinven and Canada Pension Plan Investment Board (CPPIB) today announce an agreement to acquire Hotelbeds Group. \u2022 Hotelbeds\u2019 highly experienced management team, led by Joan Vil\u00e0, CEO, to remain at the helm of the business. \u2022 Cinven and CPPIB to partner with the management team to strongly position the business for fast growth together with its industry partners. London, UK and Toronto, CANADA — European private equity firm Cinven and Canada Pension Plan Investment Board (\u2018CPPIB\u2019) recently announced an agreement to acquire Hotelbeds Group (\u2018Hotelbeds\u2019 or the \u2018Company\u2019), the global provider of travel services based in Spain, from Tui Group for a total enterprise value […]<\/p>\n","protected":false},"author":3,"featured_media":5875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[],"class_list":["post-5874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"acf":[],"jetpack_featured_media_url":"https:\/\/primer.com.ph\/blog\/wp-content\/uploads\/sites\/14\/2016\/05\/Picture1-1-e1462872969631.jpg","_links":{"self":[{"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/comments?post=5874"}],"version-history":[{"count":1,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5874\/revisions"}],"predecessor-version":[{"id":5876,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5874\/revisions\/5876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/media\/5875"}],"wp:attachment":[{"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/media?parent=5874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/categories?post=5874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/primer.com.ph\/blog\/wp-json\/wp\/v2\/tags?post=5874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}