Stella Group has announced that private equity firm CVC Asia Pacific had agreed to acquire 65 per cent of the leading integrated hospitality and travel group.Stella Group Managing Director Rolf Krecklenberg welcomed the transaction, which will now leave MFS Limited as a passive investor in the Stella Group. He said Stella Group’s management team and staff was looking forward to working with CVC to ensure the company builds on its success to date.
“This transaction is an excellent outcome for Stella Group and a great vote of confidence in the company’s strategy and outlook,” Mr Krecklenberg said. “We could not have wished for a better capitalised, more knowledgeable majority shareholder to help us grow our brands internationally and refine our business domestically.
“CVC has a formidable track record as a long-term investor, acquiring high-quality companies and employing their vast resources and expertise to help them achieve their full potential,” he said.
It is anticipated that the parties will complete the transaction as soon as foreign investment approvals have been obtained.
CVC Asia Pacific Managing Director, Ben Keeble, said that CVC is delighted to be taking a controlling interest in the Stella Group.
“Stella is a unique business in this market led by a high quality management team. We look forward to working with Rolf, Keith Stanley (CEO Stella Travel Services) and Bob East (CEO Stella Hospitality) to continue to grow the Stella brands in Australia and overseas for the benefit of all stakeholders in the Company”.
“We are investing in the group with the view to growing the business in line with the stragetic plan,” he said.
Mr Krecklenberg said Stella Group, which has operated as an independent subsidiary of MFS since July 1, 2007, generating record EBITDA due to the contribution of recent acquisitions and growth in existing operations.
“With speculation about the ownership structure now settled, Stella Group can concentrate all its energies on achieving its financial and operational targets and adding value to our core partners,” Mr Krecklenberg said.