Abu Dhabi-based private equity firm Gulf Capital acquires a 57.5% stake in a Dubai wholesale travel agent as part of a management buyout deal.
Gulf Capital announced its successful closing of the management buy-out of Destinations of the World, a leading multi-regional hospitality distributor.
Gulf Capital partnered with DOTW’s senior management team to acquire 100% of the company. Post-transaction, Gulf Capital (profile) will retain a controlling 57.5% stake, with the balance held by DOTW management.
Established in Dubai in 1993, DOTW has grown into one of the world’s largest accommodation wholesalers, operating an exclusively B2B distribution model.
DOTW secures access to hotel room inventory in different travel destinations and sells hotel room bookings to its multi-regional distribution network of travel agents, online travel agents, airlines and tour operators. The company has established a solid leadership position across MENA, with 95% penetration of the region’s travel retailer agency market.
Dr. Karim El Solh, Chief Executive Officer of Gulf Capital said: “This is a landmark deal for us. This was our largest management buy-out to date, in which once again we demonstrated our focus on identifying strong management teams with a demonstrated track record and partnering with them to acquire and grow a business to the next level. The accommodation wholesale sector is the fastest growing segment of the global travel market and DOTW has a solid track record of driving top-line growth and achieving significant scale economies.”
Keith Fernandez, Group Founder & CEO of DOTW said: “We are excited to partner with Gulf Capital. From the outset, the investment team approached the opportunity with the mindset of adding value to our business. My team and I are very proud of the business that we have built and we look forward to taking it to even greater heights with our new partners.”
The transaction was funded by a combination of equity provided by Gulf Capital and the management team and acquisition finance provided by HSBC. Gulf Capital was advised by Boston Consulting Group, Freshfields Bruckhaus Deringer LLP and PriceWaterhouseCoopers.