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Eurazeo invests EUR300m in Fintrax

Eurazeo is investing EUR300 million in Fintrax, one of the world’s leading providers of Tax Free Shopping (TFS) and Dynamic Currency Conversion (DCC) services.

Eurazeo will own 90 per cent of the equity and quasi-equity of the Fintrax group, the remaining being held by the firm’s management team. Eurazeo’s investment is based on an enterprise value of EUR550m, with a further EUR35m payable based upon 2016 performance. Closing is expected to occur before year-end.
 
Founded in Ireland in 1985, Fintrax is the parent company to Premier Tax Free, the number two player in TFS worldwide, helping eligible international travellers to claim back VAT on retail purchases. The company is also active in the DCC market, allowing international travellers to pay for goods and services in their own currency in shops, hotels or restaurants. The TFS market has enjoyed robust growth in recent years (CAGR +25 per cent between 2009 and 2014), driven in particular by an increase in international traveler numbers.
 
Fintrax operates in 30 countries, serving 14,000 retail merchants with over 150,000 points of sale generating circa EUR5 billion of eligible tax free sales annually. Its main clients include leading luxury and retail brands such as Chanel, Gucci, Printemps, Michael Kors and Ralph Lauren. The company processes over 8 million TFS vouchers and handles over 8 million DCC transactions per year.
The company has experienced exceptional growth with revenues and EBITDA increasing respectively by +20 per cent p.a and + 31 per centp.a. since 2011. July LTM revenue stood at EUR198m.
 
Fintrax` growth strategy is mainly focused on the expansion of TFS geographically, especially in Asia, and further development of DCC, especially outside Europe and into adjacent markets within the DCC segment.
 
Marc Frappier, Managing Director of Eurazeo, says: “Fintrax meets all our investment criteria: a fast-growing company, leading market positions and a strong business model based on the solid megatrends of the rapid expansion of the middle classes in emerging markets, growth in international travel and increasing luxury consumption. We are convinced that our experience in the luxury retail and travel & leisure sectors, as well as our international network, notably in China and Brazil, will be major assets in the acceleration of the development of the company. We are keen to support Patrick Waldron and his management team in the future growth of the group. ”
 
Patrick Waldron, CEO of Fintrax, adds: ”The management team and I are genuinely delighted to be partnering with Eurazeo, who share our belief in the business and its growth potential. We believe that they are the ideal partner for our business for the next stage of its development. I look forward to working with Eurazeo, our customers and  partners, and my management team and staff to continue to build Fintrax into a major international payments business.”
 
Linklaters advised Eurazeo on the acquisition. 

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