Private equity firm takes majority stake in Stella

Private equity firm CVC Asia Pacific has agreed to acquire 65% of Harvey World Travel/Global’s Australian parent Stella Group for more than A$400 million (£190 million).

Stella Group managing director Rolf Krecklenberg welcomed the transaction, which will now leave fomrer owner, Australian financial services company MFS, as a passive investor in Stella.

He said Stella Group’s management team and staff was looking forward to working with CVC to ensure the company builds on its success to date.

The deal is reported to remove around $905 million of Stella’s debt from MFS’s balance sheet. 

“This transaction is an excellent outcome for Stella Group and a great vote of confidence in the company’s strategy and outlook,” Krecklenberg said. “We could not have wished for a better capitalised, more knowledgeable majority shareholder to help us grow our brands internationally and refine our business domestically.

“CVC has a formidable track record as a long-term investor, acquiring high-quality companies and employing their vast resources and expertise to help them achieve their full potential,” he said.

It is anticipated that the parties will complete the transaction as soon as foreign investment approvals have been obtained.

CVC Asia Pacific managing director Ben Keeble said that CVC is delighted to be taking a controlling interest in the Stella Group. 

“Stella is a unique business in this market led by a high quality management team. 

“We look forward to working with Rolf, Keith Stanley (CEO Stella Travel Services) and Bob East (CEO Stella Hospitality) to continue to grow the Stella brands in Australia and overseas for the benefit of all stakeholders in the Company”.

“We are investing in the group with the view to growing the business in line with the stragetic plan,” he said.

Krecklenberg said Stella Group, which has operated as an independent subsidiary of MFS since July 1, 2007, generating record EBITDA due to the contribution of recent acquisitions and growth in existing operations.   

“With speculation about the ownership structure now settled, Stella Group can concentrate all its energies on achieving its financial and operational targets and adding value to our core partners,” Krecklenberg said.

ABOUT STELLA

Stella Group comprises Stella Hospitality Group and Stella Travel Services. The accommodation business includes the Peppers, Mantra, BreakFree brands in Australia and New Zealand, Protea Hotels and African Pride brands in Africa, with circa 4000 staff, and a 40% strategic stake in Golden Tulip the European based hotel company. Stella Travel Services also operates the largest integrated travel network in Australasia, with almost 3,000+ staff in 12 countries and 2,100 retail and corporate outlets under banners including Harvey World Travel, Travelscene American Express, Holiday Shoppe, United Travel, Travelbag and Global in the UK.

ABOUT CVC
CVC Capital Partners is a leading global private equity firm with over US$29 billion in funds focused on management buyouts. CVC was founded in 1981 and today has a network of 18 offices throughout Europe, Asia and the United States. Since 1981, CVC has completed over 250 investments across a wide range of industries and countries.

CVC Asia Pacific has been one of the most active private equity investors in the region and has completed 29 management buyouts, with an enterprise value of US$17.5 billion, covering Australia, Southeast Asia, Korea, Japan, China and Taiwan.

CVC’s current Asia Pacific portfolio includes:

PBL Media: Australia’s largest diversified media group (including Channel Nine, ACP Magazines and NineMSN);

IMED: the largest diagnostic imaging center operator in Australia;

Zhuhai  Zhongfu Enterprise Company Limited

Amtek: Singapore’s largest precision metal stamping company;

GS Paper and Packaging: Malaysia’s largest paper and packaging company;

Plantation Timber Products: a leading manufacturer of wood fibreboards and   

Laminated flooring in China;

Magnachip: a leading semiconductor company in Korea; and

Nien Made: the world’s largest window shutter company

CVC’s current European portfolio includes:

Formula One: the world’s leading motor sport management business;

Samsonite: the global luggage company;

AA/Saga: a leading affinity brand business;

Cortefiel: one of the largest apparel retailers in Spain;

Debenhams: Britain’s leading department store group;

Seat Pagine Gialle: the leading directories business in Italy;

De la Poste: the Belgian postal services operator; and

Post Danmark: the Danish postal services operator.

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