Bain to exit Apple Leisure after nearly four years

Bain Capital Private Equity’s sale of Apple Leisure Group looks as if it will produce a healthy return for the private equity firm.

On Tuesday, KKR and KSL Capital Partners agreed to buy Apple Leisure. Financial terms weren’t announced. Apple Leisure, Philadelphia, is a hospitality company that sells all-inclusive vacation packages through units Apple Vacations LP, AMSTAR Holdings LP and AMResorts Holdings LP.

Bain Capital acquired Apple Leisure Group in January 2013, paying $343.5 million for the company, Moody’s Investors Service said at the time. Apple Leisure later in 2013 acquired CheapCarribean, an online leisure wholesaler, and Travel Impressions, a B2B tour operator.

KSL, of Denver, targets the travel and leisure sector with investments such as Squaw Valley/Alpine Meadows and Miraval Resort & Spa. KKR, meanwhile, led the $50 million growth equity investment for GetYourGuide in 2015 and acquired Trainline. It also owns Queens Moat Hotels.

Bain has tried to get some of its money back. In September 2015, Apple Leisure planned to launch a $510 million covenant-lite dividend recap but ended up pulling the transaction, Buyouts said. Apple Leisure had expected to use proceeds to pay out a $250 million dividend to its owners, Moody’s said. Bain owned about 85 percent of the company at the time. The firm then put Apple Leisure up for sale in July and was seeking bids of more than $1.5 billion, Reuters reported.

Assuming Bain received at least $1.5 billion for Apple Leisure, the PE firm appears to be making at least 4x its money based on deal value. Bain declined comment.

It’s not clear which fund Bain used to invest. The firm’s most recent flagship fund, Bain Capital Fund XI, closed at $7.3 billion in 2014. Bain’s prior flagship, Fund X, collected $10.7 billion in 2008.

Fund X is producing a 7.39 percent IRR since inception as of March 31, California State Teachers’ Retirement System performance data shows. Performance data for Fund XI was not available.

Credit Suisse and Kirkland & Ellis served as advisers to Bain Capital Private Equity. Simpson Thacher & Bartlett and Dentons advised KKR and KSL.

Action Item: To contact KSL call +1 720-284-6400.

A man takes a photograph of his son in front of the 13th century Qutub Minar in New Delhi on Sept. 29, 2016. Photo courtesy Reuters/Adnan Abidi