The European private equity firm Cinven and Canada Pension Plan Investment Board (CPPIB) announces an agreement to acquire Hotelbeds Group, the global provider of travel services based in Spain, from Tui Group for a total enterprise value of €1.165 billion.
Being the largest independent business-to-business (B2B) global bedbank, Hotelbeds offer 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 that, the company also provide transfers, excursions and tours, meetings and events, visa processing, outsourcing and cruise handling services.
Shane Feeney, Managing Director and Head of Direct Private Equity for CPPIB says: “Hotelbeds is a unique opportunity to invest in the leading operator within the hotel accommodation distribution market. 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.”
Meanwhile, Joan Vilà, CEO of Hotelbeds Group adds: “We are excited about Cinven and CPPIB’s investment in Hotelbeds which will enable us to continue improving the quality and range of services we provide to customers as a financially solid and independent bedbank operator.
The 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.”