Cinven, BC sell €617m stake in travel company

Friday’s sale, combined with a 2007 refinancing and a public listing in April, combine to generate a return of around 3.6x on the investment in Amadeus.

Cinven and BC Partners have been gradually exiting their investment in travel industry reservations processor Amadeus, and Friday sold a further 10.21 percent stake in the company for about €617 million.

Cinven will realise €263 million of gross proceeds from Friday’s sale for its third fund, which collected €4.4 billion in 2002, the UK-based firm said in a statement.

Combined with a 2007 refinancing, a public listing in April and this week’s sale, the two firms are reaping a 3.6x return on the investment. Both firms retain 15 percent stakes in the company, which they must hold due to lock-up agreements for at least 90 days.

The two private equity firms, as well as Iberia Lineas Aéreas de Espana, sold a total of about 46 million shares in the company for a total price of about €617 million, which is equivalent to the sale price of €13.50 per share.

In April, the firms listed Amadeus at a price of €11 per share in a €1.3 billion initial public offering.

Cinven led the original investment in Amadeus in 2005 in a deal that valued the company at €4.4 billion. BC Partners joined the deal, along with three airline shareholders – Air France, Lufthansa and Iberia – which co-invested with Cinven.