Cox and Kings acquires Tempo holidays in Australia and New zealand 19th, November 2008
COX AND KINGS ACQUIRES TEMPO HOLIDAYS IN AUSTRALIA AND NEW ZEALAND
November 19th, 2008: Cox and Kings India Ltd, (CKIL), through its Australian Special Purpose Vehicle (SPV), has acquired Tempo Holidays, a specialist leisure travel company based in Australia with office in New Zealand as well. The acquisition has been funded by internal accruals and offshore debt from Axis Bank.
Speaking on the acquisition, CKIL's Global CEO, Mr Peter Kerkar said, "Tempo Holidays is an excellent fit for us and seeing the performance of Tempo Holidays it reinforced our belief that the Australian market is ready for an upmarket brand such as Cox & Kings. Our products would be widely distributed in Australia and New Zealand.
Tempo Holidays was founded in 1990 by Susan and Gary Hearst in 1990 as Yalla Holidays. It was rebranded in 2001 as Tempo Holidays, and offers travel arrangements in over 42 countries. It has offices in Australia as well as New Zealand.
With the completion of the sale, the ownership of Tempo Holidays has been transferred to Cox and Kings (Australia) Pty Ltd; However, Tempo Holidays will continue to retain its name. It will continue to be an outbound travel wholesaler and the product offering of Tempo will be strengthened by CKIL.
The acquisition gives CKIL an opportunity to establish its presence in the Australian and New Zealand market. Tempo is one of the leading wholesalers in the Australian outbound tourism market. A well established player will save the time and resources that would have been necessary to establish a network of the kind operated by Tempo.
The Australian market is large as far as outbound travel is concerned and is expected to grow at a CAGR of 5.2 per cent until 2016.