Gulf Capital creates more global industry leaders originating from the Gulf region
Acquisition helps DOTW expand in South Korea, China, Taiwan, Hong Kong and Japan and creates an emerging markets leader in the accommodation wholesale sector
Abu Dhabi - Gulf Capital, one of the leading alternative investment firms in the Middle East, announced today that its portfolio company, Destinations of the World ("DOTW") has acquired 100% of Bico, a major player in the Asian accommodation wholesale market, in a groundbreaking deal for the sector. With this third portfolio bolt-on acquisition in Asia Pacific, Gulf Capital drives ahead with creating homegrown global companies in various industries, including oil and gas services, water and desalination, power and, with this latest acquisition, the wholesale travel market.
DOTW is a leading global wholesale travel company established in Dubai in 1993. It has grown into one of the world's largest accommodation wholesalers, operating an exclusively B2B distribution model in one of the fastest growing segments of the global travel industry. The company 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, enjoying a 95% penetration of the region's travel retailer agency market. The latest acquisition gives it a strong foothold in the Asian market.
Established in 1997 as an inbound travel agency in Japan offering travel solutions to South Koreans travelling to Japan, Bicohas since grown to become a leading player in the Asian accommodation wholesale market expanding its reach into China, Hong Kong, Taiwan in addition to Japan and South Korea.
The combined DOTW and Bico businesses will offer customers access to over 150,000 hotel properties worldwide, with more than 37,000 properties contracted directly. Existing hotel and accommodation partners will benefit from a significant increase in scale and diversity of distribution, covering the industry's highest growth markets. With a strategic focus on expansion in Asia Pacific, the combined businesses will benefit from a large regional footprint and offices in nine countries. This will further facilitate the delivery of a fully localised service for both customers and suppliers across emerging and growth markets.
Dr. Karim El Solh, Chief Executive Officer of Gulf Capital said: "This acquisition represents a landmark deal for Gulf Capital and DOTW. This is our third portfolio bolt-on acquisition in Asia Pacific, demonstrating Gulf Capital's ability to build global companies out of the Gulf region. The combined DOTW and Bicobusinesses create a global leader in the wholesale travel market with a wide footprint from the Middle East and Europe all the way to Asia Pacific. We look forward to replicating such transformational acquisitions across our investment portfolio to create even more global market leaders originating from the Gulf region."
Keith Fernandez, Founder and Chairman of DOTW: "These are exciting times for DOTW, and I am very happy to be joining forces with another veteran player in the industry. The Bicoteam has built a strong business in Asia-Pacific that is not easily replicable. I look forward to a great partnership with Bico."
Richard Dallas, Managing Director,Private Equity at Gulf Capital, commented: "Over the last year, the investment team has worked hard, in partnership with DOTW's management, to identify the right opportunities to spearhead DOTW's expansion into new geographies. We are thrilled to announce the Bicotransaction as the first of many to be realised over the coming years. DOTW is consolidating the wholesale travel sector in emerging markets and rapidly arising as a global leader."
James Burdett, Chief Executive Officer of DOTW said: "Bicohas built a business with an enviable position in complex markets with high barriers to entry. These markets play a pivotal role in regional travel and are highly complementary with our existing destination and distribution strengths. We look forward to working with the Bicoteam to further strengthen our position in Asia Pacific and deliver the synergies that make our companies a perfect fit."
Tarek Mounib, Executive Director,Private Equity at Gulf Capital, concluded: "Bicocombination with DOTW strengthens the collective group's offering and allowsit to realise significant scale economies. We are very excited to assist DOTW in its global growth phase and look forward to expanding into further geographies."
The transaction was funded internally by DOTW available cash. Gulf Capital and DOTW were advised by Kim & Chang, Price Water house Coopers and jointly by TC Capital and Locus Capital Partners.
About Gulf Capital
Gulf Capital is one of the leading alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Credit and Mezzanine and Real Estate. The Firm currently manages over $4 billion of assets across 7 funds and investment vehicles. Gulf Capital's mission is to grow capital and build value with world-class expertise and best practices to generate sustainable superior performance for all stakeholders. Gulf Capital invests its own capital alongside its fund investors' capital in all of the funds it launches. In Private Equity, Gulf Capital is focused on acquiring strategic stakes in highly profitable and rapidly growing companies within a select number of fast-growing industries in the GCC and Egypt and through deep operational and financial improvements, on accelerating and enhancing their profitability and size. Gulf Capital was awarded the "Best Private Equity Firm in the Middle East" Award by Banker Middle East Magazine in 2011, 2012, 2013, 2014 and 2015 and the "Best Private Equity Firm" in the Middle East and North Africa by Private Equity International, as well as "Best SMEs Credit Fund in the Middle East' in 2015. The Firm is actively involved in real estate development through Gulf Related, its joint venture with the Related Companies, the leading private real estate developer in the United States. Gulf Related is focused on pursuing marquee large-scale mixed-use and residential real estate development opportunities in the UAE and Saudi Arabia. Gulf Capital also launched a Credit and Mezzanine Business, Gulf Credit Partners, to meet the financing needs of fast-growing companies and to provide acquisition finance across the Middle East. With its private equity, real estate and credit initiatives, Gulf Capital is today one of the largest and most diversified alternative asset managers in the Middle East.
For more information about Gulf Capital PJSC, please visit Gulf Capital's website at www.gulfcapital.com
About Destinations of the World (DOTW)
Destinations of the World is a leading global travel industry wholesaler. DOTW's proprietary online reservation system, DOTW connect, seamlessly connects travel agents, tour operators, wholesalers and airlines to more than 130,000 hotels in over 10,000 destinations worldwide.
About Bico Trip
Bico Trip is a major player in the Asian accommodation wholesale sector. Established in 1997 and based in Seoul, South Korea, Bico has a network of offices inSouth Korea, Japan, China, Hong Kong, Taiwan, Thailand and Singapore offering B2B accommodation products while delivering a localized service to travel businesses across the region.
Issued by Borouj Consulting on behalf of Gulf Capital. For more information, please contact: Randa Mazzawi randa@boroujconsulting.com or Mayssa Makhlouf mayssa@boroujconsulting.com at Tel: +9714 3403005, Follow us on Twitter @Borouj.
© Press Release 2015
