It’s what private equity firms do. Cinven, the London-based private equity firm which, along the Canada Pension Plan Investment Board, purchased Hotelbeds from TUI in April 2016 months ago, announced on March 28 that it had sold its receptive division, Destination Services, Intercruises & Port Services and Pacific World, back to TUI for €110 million ($135.5 million). The timing benefited Cinven/CPPIB as the euro has appreciated in value nearly nine percent since the investors first bought Hotelbeds and its component parts from Hannover, Germany-based TUI.
The destination management division was directed by Jordi Cerdó and had 150 offices around the world. It was a B2B provider of receptive services for tour operators that offered circuits and transfers in Europe, America, India, Indian Ocean and Asia-Pacific.
The move came as the restructuring of Hotelbeds following its acquisition last year of Tourico and GTA plays out midst reports of scores of employees losing their jobs, with reports indicating that Hotelbeds has dismissed up to 40 management-level staff after absorbing Tourico and GTA.
According to a report in the Mexican travel trade news site, REPORTUR, following the firing of the 40 managers Hotelbeds completed are structure of 350 second- and third-level management posts after several weeks analyzing each situation case-by-case and studying the needs of the company after the absorption of Tourico Holidays and GTA.
In a statement, Joan Vila, executive chairman of the Hotelbeds Group, said: “In many cases the increased size of our newly-combined business has meant that we have been able to appoint people into exciting and fulfilling new roles within our organization.
“However, sadly in some cases there have not been appropriate roles for every single person due to the strong talent pool available. The appointments followed a rigorous and robust review process, supported by external experts. Factors such as geography or new skill set requirements played a significant part in the difficult decisions taken. We recognise the contributions of these people and wish them all the best for the future.”