United Arab Emirates-based private equity firm the Abraaj Group has announced that it is selling its stake in Peru-based tour operator Condor Travels to The Carlyle Group.
The company did not disclose the size of the stake sold or the value of the deal.
The exit from Condor Travels was done via Abraaj’s Latin American Fund and is Abraaj’s fourth exit from the fund in the last 12 months.
The transaction is expected to close by the end of September.
Formed in 1977, Condor Travels operates under two major divisions that facilitate inbound and outbound tourism in Peru. The company is organised through a subsidiary in Chile and franchises in Brazil, Ecuador, Bolivia and Argentina. It also has sales offices in the United States, Japan, Dubai, Portugal, Australia, Russia and India.
Through its investment Abraaj helped Condor Travels to expand its service offerings and improve its regional footprint. Such diversification in services also helped the tour operator to increase sales globally. The firm served over 40,000 customers last year, up 55 per cent from 2010.
“We believe there is an excellent opportunity to add significant value to high growth businesses, create regional expansion opportunities via integration through the Pacific Alliance, and ultimately foster a more entrepreneurial-driven eco-system that can generate strong returns for our investors and stakeholders,” said Abraaj’s partner and regional head of Latin America Miguel Olea.
Abraaj has been investing in the Pacific Alliance countries of Colombia, Mexico and Peru since 2008.
Within Peru, the private equity firm currently holds stakes in restaurant group Acurio Restaurantes and light logistics and courier service provider Urbano.
Abraaj’s exit also comes as Latin America grapples with a slowdown in investment activity, especially in private equity. According to a report by EY, the number of private equity deals fell by 18 per cent in 2014 although value of the deals rose marginally.