In what is a landmark deal, U.S. Private Equity company Apollo and The Travel Corporation (TTC) have announced a definitive agreement for Apollo-managed funds to acquire the vertically integrated business.
This monumental acquisition, which encompasses 18 renowned TTC brands such as Trafalgar, Adventure World, Contiki, Insight Vacations, and Uniworld Boutique River Cruises, marks a historic transition and the end of the privately owned company’s famed journey. TTC has been an industry leader in Australia and internationally for over a century.
The Travel Corporation was founded in 1920 in the small fishing village of Paternoster, South Africa, and has been operated by the Tollman family for over 104 years since. With no next generation to continue the family legacy, TTC’s Chairman, Brett Tollman, stated that it was time to sell the company, emphasising the importance of selecting a new owner who shares their vision and values.
“Without a next generation to lead TTC, the time has come in our strategic succession plan to select a new owner with a proven track record and who shares in our vision and customer-first values.
“We will support a seamless transition and are confident the team at Apollo will continue driving the business forward to meet growing global demand for touring, river cruising, and specialist and adventure travel,” said Tollman.
Who is Apollo?
Founded in 1990 and headquartered in New York, Apollo is one of the leading asset management firms globally and has a proven history of providing businesses with capital solutions for growth. Its investment expertise spans a wide range of sectors, including real estate, infrastructure, and private equity.
Known for its innovative approach to investing, its portfolio includes investments in the travel industry, such as its previous ownership of companies like Diamond Resorts (which Apollo sold to Hilton) and its current stake in Expedia Group.
Apollo Global Management, in collaboration with Silver Lake Partners, acquired its stake in Expedia Group in 2020 during the COVID-19 pandemic. This investment amounted to US$1.2 billion, providing a significant liquidity boost to Expedia amid the travel industry’s downturn. The strategic partnership allowed Apollo and Silver Lake to secure preferred stock in Expedia, giving them influence without outright control.
As of March 2024, Apollo reportedly had approximately US$671 billion of assets under management, with a current market capitalisation of approximately US$69.70 billion.
What’s Apollo’s vision for TTC?
In a media release to financial markets, Apollo Private Equity Partner Michele Raba expressed his enthusiasm about the TTC acquisition, highlighting Apollo’s extensive experience in the travel, tech, and hospitality sectors.
“TTC has a leading collection of brands that we believe we can take to the next level as an Apollo Funds portfolio company, leveraging our extensive experience in the travel, tech, and hospitality sectors. We look forward to building on its legacy in an exciting next chapter in which TTC can serve as a platform for growth,” Raba said.
What happens now?
The transaction is expected to close in the last quarter of the calendar and U.S. fiscal year, subject to regulatory approvals and other closing conditions.
While the financial terms have not been disclosed, it was confirmed that certain brands from TTC’s portfolio of 40 brands, such as The Red Carnation Hotel Collection, will not be included in the sale.
No further details were shared on exactly which 18 brands and ‘other global supporting business entities’ Apollo will acquire or what changes this could potentially mean for Australian and New Zealand operations.
More to come.
To learn more about Apollo, visit www.apollo.com
