L Catterton has announced a private placement investment of US$150m in Despegar.com, an online travel agency in Latin America. The investment is expected to close in September 2020 and is subject to customary closing conditions. The travel company began trading in the New York Stock Exchange (NYSE) in 2017.
(Press Release) L Catterton, the largest and most global consumer-focused private equity firm, today announced a private placement of $150 million in aggregate principal amount of non-convertible preferred stock plus warrants to purchase ordinary shares by an affiliate of L Catterton in Despegar.com, the leading online travel agency in Latin America.
Despegar has over two decades of business experience and operates in 20 countries across Latin America through two well-recognized brands – Despegar, its global brand, and Decolar, its Brazilian brand. The Company’s websites and leading mobile apps offer products from over 270 airlines, more than 690,000 accommodation options, as well as more than 1,260 car rental agencies and approximately 200 destination services suppliers with more than 7,500 activities throughout Latin America.
“As the leading online travel agency in Latin America with strong brand recognition, Despegar has significant potential to continue driving growth in a highly attractive market,” said Dirk Donath, Managing Partner, L Catterton Latin America. “We believe Despegar is well positioned to succeed over the long term as the travel industry recovers. We look forward to partnering with the Company’s talented team to expand Despegar’s regional leadership and capture additional value through both operational and strategic initiatives.”
L Catterton’s investment in Despegar is the firm’s third recent transaction in the global travel industry, which also included:
$400 million in aggregate principal amount of exchangeable senior notes due 2026 by an affiliate of L Catterton in NCL Corporation, a subsidiary of leading global cruise company Norwegian Cruise Line Holdings Ltd.; and
$75 million in common equity and warrants in OneSpaWorld Holdings Limited, the preeminent global provider of health and wellness services and products on-board cruise ships and in premium destination resorts around the world, through Steiner Leisure Limited, a company controlled by affiliates of L Catterton.
Ramiro Lauzan, Partner, L Catterton, said, “Despegar sits at the intersection of several deep, secular consumer trends that are emerging across Latin America. The global pandemic has presented unprecedented challenges for the travel industry, and throughout it Despegar has displayed remarkable resilience. We are pleased to partner with Despegar as it takes the next step in its journey to becoming the unrivaled partner of choice for customers, suppliers, and merchants across Latin America.”
L Catterton’s current and historic investments in the global travel and leisure industry include Norwegian Cruise Line Holdings, OneSpaWorld, Getaway, and GetYourGuide. In addition to Despegar, other L Catterton Latin America investments include Petlove, OdontoCompany, Cholula, Grupo MYT, Laboratorio FEMME, Luigi Bosca, Susana Balbo Wines, Espaçolaser, Rapsodia, Grupo St. Marche, and Bodytech.
About L Catterton
With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of nearly 200 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH, and Groupe Arnault. For more information about L Catterton, please visit www.lcatterton.com.