Abercrombie & Kent Travel Group (AKTG) has signed a financing agreement for up to US$500 million (AU$760m), underwritten by Citi, to fund its continued expansion of its Abercrombie & Kent global travel business.
“This deal cements another milestone in the over 30-year relationship between my family and Citi,” AKTG executive chairman, Manfredi Lefebvre d’Ovidio, said. “It is a partnership that has helped build businesses and generate growth all around the world. I am excited about this next chapter together and the possibilities it unlocks for Abercrombie & Kent.”
The facility enables the company to restructure existing legacy financing arrangements, not only consolidating them, but achieving improved lending terms. This gives Abercrombie & Kent a clear runway for expansion over the coming years, the company said.
“This transaction, facilitated by our strong partnership with Citi, is a step change for the Abercrombie & Kent Travel Group and our vision of ‘One A&K’, creating a clear runway for us to further accelerate our growth path and expanding into more locations where we can continue to delight our guests,” AKTG CFO said Andrew Burrett, added.
The funding is part of the ‘One A&K’ strategy, which is focused on unifying every element of the business and improving the end-to-end product experience for consumers. As part of this growth, Abercrombie & Kent will invest in expanding its owned assets, globally. This will result in new Destination Management Companies (DMCs) and physical assets such as camps, lodges, and riverboats, in existing and new markets.
New DMCs are planned in Mexico and Indonesia this year, in addition to Abercrombie & Kent’s existing 56 offices in 34 countries. New products have been created across the globe, from land-based itineraries to private-jet journeys on the A&K jet.
“Our finance team, headed by Andrew Burrett, did a tremendous job in negotiating and securing this transaction in record time. Once again Citi has shown to us their support reconfirming that they believe in our vision and in the enormous growth potential of Abercrombie & Kent, Crystal and Cox and Kings,” AKTG CEO, Cristina Levis, added.
There are Expedition Cruises on all seven continents, with two new cruises launched this year. A new riverboat will launch in Peru next year, joining the company’s current fleet of four riverboats in Egypt, and three expedition yachts in the Galápagos Islands under the Ecoventura brand. Abercrombie & Kent also has 12 camps and lodges in Africa, with a new one slated to open next year in Kenya’s Amboseli.
The company is also investing in its back-office systems and creating a world-leading digital infrastructure, centred on a new Abercrombie & Kent global website, centralised booking system, travel advisor portal – all supported by a bespoke CRM platform.
AKTG were advised by King & Spalding LLC and Citi were advised by Norton Rose Fulbright LLC in this transaction.
A&K Travel Group includes Abercrombie & Kent, Crystal, and Cox & Kings, as well as investments in other travel companies such as Habitas.
Feature image: Manfredi Lefebvre d’Ovidio (left) and Geoffrey Kent (Youtube/Abercrombie & Kent USA) in 2023.
