Cavendish Corporate Finance, a UK sell-side mid-market M&A firm, has advised Tristar Worldwide, a luxury travel service operator on its acquisition by Addison Lee, Europe’s largest private hire company.
Founded in 1978, Tristar pioneered airline door-to-door luxury chauffeur services for global airline companies such as Virgin Atlantic. Today, the company is an international business, with global revenues of £50m, more than 200 staff, over 450 drivers and a reputation for being one of the most trusted names in the business. Tristar has headquarters on three different continents and a multitude of regional centres across Europe, North America and Asia.
The Tristar brand will continue, bolstered by Addison Lee’s substantial fleet, 15,000 business customers and market leading technology. Addison Lee already operates the largest executive car fleet in the UK and together with Tristar’s fleet the two business will have almost 1000 premier cars around the world, becoming the undisputed market leader in the executive car market.
Strong customer demand for executive car services, particularly on a trans-Atlantic basis, means the combined business is well positioned for growth and will create Europe’s largest car service operator with over 5000 cars and drivers, and a team of over 800 dedicated to delivering the best possible customer service.
Cavendish Corporate Finance, which advised Tristar on the deal has considerable experience in advising luxury brands and premium travel businesses. Recent high profile transactions include advising on the sale of luxury travel group Scott Dunn and Cavendish has also advised on a wide range of other luxury and classic brands as New & Lingwood, Liberty, Raleigh Bicycles, Mappin & Webb and Princess Yachts. The success of this transaction demonstrates that there is continuing strong interest in UK mid-market businesses from both domestic and international purchasers.
Jonathan Buxton, Partner and Head of the Consumer Group at Cavendish Corporate Finance, says: “Appetite for luxury car services is expanding around the world, as increasingly high net worth individuals and business professionals expect to be able to access a truly premium service wherever they travel. China outbound alone is a huge opportunity, with significant increases forecast in both business and independent leisure travel.
“I am delighted that we were able to create a competitive process for the sale of Tristar, drawing, in particular, on the local expertise of our partner firms across the Far East and in the USA, culminating in the sale to Addison Lee. Addison Lee and Tristar have the potential to create a truly global luxury car operator, able to offer a seamless international service across markets and geographies. With demand growing strongly, we expect to see further transactions in both luxury services and travel."
Andy Boland, CEO, Addison Lee, says: “There will be significant growth in the executive car market following the 15% jump in volumes we saw in 2015. With Tristar, we will be able to take our service to the next level and into new markets around the world. For the customers of both companies this means a better and more efficient experience and a global service.”
Dean de Beer, CEO, Tristar Worldwide, says: “Both Addison Lee and Tristar are market leaders in their respective sectors with long standing reputations for service quality and reliability. When we set out to look for a partner with whom we can grow and take our business to the next level, Addison Lee was the obvious choice. I am proud of what we have achieved so far and excited about the next chapter for Tristar.”
