Australia's BGH backs online travel agent

The private equity firm approached TripADeal before the COVID-19 outbreak triggered border lockdowns that have brought international tourism to a virtual standstill. The company said that it was confident about the future of Australian tourism and had identified growth opportunities that will enable it to emerge from the pandemic in a stronger position.

The Australian Financial Review reported that BGH has taken a 55% stake in TripADeal, which was on track to generate more than A$200 million ($146 million) in annual revenue before the outbreak.

The Byron Bay-based company was founded in 2011 by Norm Black and Richard Johnston. It claims to send more than 60,000 customers on trips every year, with packages ranging from guided tours of the Taj Mahal to treks through the Andes to luxury cruises in the Caribbean. Initially focusing on the Australian market, it expanded into New Zealand in 2018.

“While the travel industry was the first industry affected, we strongly believe it will be one of the first industries back. TripADeal is now ready to hit the go button as soon as international travel resumes,” Black and Johnston said in a joint statement.

Ben Gray, founding partner of BGH, added that TripADeal’s online business model allows enormous growth opportunities, while avoiding the cost structures of more traditional bricks-and-mortar operations.

“The disruption posed by COVID-19 will ensure they continue to benefit from strong industry tailwinds and the bricks-and-mortar shift to online,” he said. “The company has a very scalable business model that is supported by a well-developed technology platform. It has grown extremely fast over the last five years, winning multiple industry awards.”

BGH was established in 2017 by Gray, formerly Asia co-head of TPG Capital, Simon Harle, another TPG alumnus, and Robin Bishop, who was previously head of Australia and New Zealand at Macquarie Capital. The firm’s debut fund closed at A$2.6 billion in 2018.

Recent activity includes making a renewed bid for New Zealand dentistry chain Abano after an earlier deal was axed due to COVID-19 and a A$758 million acquisition of Australian cinema and theme park operator Village Roadshow.

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• Topics
• Australasia
• Buyouts
• Consumer
• Technology
• Australia
• New Zealand
• BGH Capital
• Travel