CVCI backs Cox & Kings unit with $137m

Part of the proceeds from the deal, which represents CVCI's biggest ever investment in India, will be used to repay debt that Cox & Kings' Prometheon unit took out to acquire Holidaybreak, a UK-based travel company, last September for GBP312 million ($495 million). It was the biggest outbound acquisition to date by an Indian travel firm

"We see many opportunities to consolidate, grow and over time, export the competencies built over decades in Holidaybreak's different divisions, building new revenue streams in significant markets like Australia and India," commented Peter Kerkar, director of Cox & Kings, which is one of the world's longest established travel companies. "This transaction is a reflection of the confidence that Citi Venture Capital International Private Equity has placed in us and our decision to acquire Holidaybreak."

CVCI will hold a minority stake in Prometheon.

Cox & Kings, which was advised by India Infoline on the investment, recently expressed interest in acquiring the Indian arm of Thomas Cook, the second-largest holiday maker in Europe. It lost out to Fairbridge Capital, a subsidiary of Fairfax Financial Holdings, in May however, as the latter bought Thomas Cook's 77% in the unit for INR8.17 billion ($150 million).

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• Topics
• Consumer
• South Asia
• Expansion
• Consumer
• India
• Growth capital
• Citi Venture Capital International (CVCI)