Private equity firms KKR & Co. (NYSE: KKR) and KSL Capital Partners LLC have teamed to purchase vacation hospitality company Apple Leisure Group from Bain Capital Private Equity. Terms of the deal were undisclosed.
Apple Leisure is a Newtown Square, Pennsylvania-based travel and hospitality group that focuses on all-inclusive packaged travel and hotel management in Mexico and the Caribbean. The conglomerate’s collection of travel and leisure businesses include destination management and travel distribution brands such as: AMResorts, Amstar, Apple Vacations, Travel Impressions, Unlimited Vacation Club, CheapCaribbean.com and Worldstar DMC.
KSL, headquartered in Denver, Colorado, is a private equity firm that targets investments in travel and leisure businesses. The firm can invest up to $400 million in equity per transaction and has previously invested in a plethora of well-known properties, including: the Village Urban Resorts in the U.K.; the Belfry, home to the PGA National Golf Academy and other golfing events, in the West Midlands of the U.K.; and the Miraval Resort & Spa in Tucson, Arizona. The firm also owns ski resorts Squaw Valley and Alpine Meadows in California. The PE firm has an additional office in London.
KKR is a global investment firm has approximately $131.1 billion in assets under management. The firm manages investments across a multitude of asset classes including: private equity, energy, infrastructure, real estate, credit and hedge funds. KKR has 119 portfolio companies in its private equity funds that generate nearly $200 billion in annual revenue and employs a total global workforce of approximately 720,000. The firm recently led an investment group that purchased the premiere mixed martial arts promoter UFC for $4 billion.
Bain Capital was founded in 1984 as a Boston-based private equity firm. The firm’s investment portfolio includes businesses across an array of industries such as: consumer and retail, financial services, business services, healthcare, industrials, and technology media and telecommunications. Bain Capital has made more than 270 investments since its inception.
The middle market has seen its share of travel deals, including: vacation rental company Expedia Inc.’s (Nasdaq: EXPE) completed purchase of HomeAway Inc. (Nasdaq: AWAY); Wasserstein Partners and others' acquisition of Northstar Travel Group, a software and information database provider for the travel and meeting industry; TA Associates' investment in Plusgrade, a revenue service for the travel industry; and Sabre Corp.'s (Nasdaq: SABR) completed acquisition of Abacus International for $411 million. In 2015, Chicago-based private equity firm Thoma Bravo won Mergers & Acquisitions M&A Mid-Market Deal of the Year Award for the firm’s $930 million purchase of TravelClick.
Credit Suisse Group AG (NYSE: CS) served as financial adviser to Bain Capital and Kirkland & Ellis LLP acted as legal counsel. Dentons and Simpson Thatcher & Bartlett LLP served as legal advisers to KKR and KSL.