Carlyle Now Owning Iberostar’s Travel Division

Carlyle, the UK investment fund, has been Iberostar’s pick to sell its travel division to. Carlyle has inked an exclusive letter of intent with Spain’s Iberostar and only the final signature is missing for the British group to get a grip of the Spanish company’s business operations, currently owned by Miguel Fluxa.

The UK investment fund has reportedly shelled out over €900 million for Iberostar’s travel division that embraces the Iberojet tour operator, some 500 Iberia Travel Agencies and the Service Division. The Fluxa family will keep its reins on the hotel division, a segment that comprises more than 90 lodgings and over 58,000 rooms in 13 countries.

Now Carlyle will become the leading wholesaler among travel agencies and tour operators in Europe with a staggering 28 percent of the market share.

In the bidding process to get a handle on Iberostar’s travel division, Carlyle outbid Apax, Vista Capital and Bridgepoint, the three finalists in this business move.

The reason behind this financial move stems from the Fluza family’s intention to beef up the hotel division, a segment that has grown dramatically over the past years, especially in the Caribbean region. The Spanish group is also drawing a bead on enhancing its cruise fleet.

Quite recently, Iberostar has started trying its hand at regular flights and with that aim in mind has created a new low-cost, no-frills air company that the group owns jointly with Iberia. This new operation will require financial liquidity on the part of Iberostar, a move that bears out the recent sellout of its travel division.