Peninsula Capital Partners in Detroit Invests in Travel and Leisure Industry
Peninsula Capital Partners' portfolio company, MMGY Global, has acquired two travel and leisure companies.
Detroit–based Peninsula Capital Partners today announced its portfolio company, MMGY Global, has completed two acquisitions with capital support from Peninsula’s most recent investment partnership, Peninsula Fund VI L.P., with committed capital of $402 million.
MMGY is a full‐service, travel‐and‐leisure focused, marketing management firm, and both acquisitions were of London‐based companies to expand MMGY’s operational footprint into Europe and the Middle East. The first acquisition of Hills Balfour Ltd. closed in March, providing MMGY its first operational presence in Europe as well as the Middle East via a Dubai‐based subsidiary. The second acquisition of Grifco Ltd. and its affiliate, Ophir PR Ltd., closed in July.
Similar to MMGY, the acquired companies are engaged in media and public relations management services to travel and leisure companies such as hotels, cruise lines, resorts, entertainment companies, and government tourism offices.
The acquisitions are the latest in a series of growth‐oriented acquisitions of travel‐and‐leisure focused marketing management firms. Since acquiring MMGY in early 2016, Peninsula has coordinated the purchase of five additional companies, each expanding MMGY’s professional capabilities, client base, and operational reach.
“We recognized quickly the unique capabilities that MMGY possessed and how we could partner with its talented management team to leverage its core strengths via strategic acquisitions into other industry verticals and geographic regions,” says Karl LaPeer, a partner at Peninsula Capital who leads the MMGY investment.
“MMGY is a firm that stands apart in the marketing management industry by virtue of its recognition of the unique needs and demands of clients in the travel and leisure space, and by crafting its business plan to service those needs and demands. By acquiring other travel/leisure‐centric firms with complementary capabilities, clients and/or indigenous markets, we are growing MMGY into the dominant player in this specialized marketing service industry.”
Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling approximately $1.6 billion of committed capital. The firm provides customized capital solutions to middle‐market businesses seeking funding to complete acquisitions, support growth, buyback stock, or address other special situations requiring junior capital.
Peninsula developed a new, more flexible investment approach in the private equity industry and is recognized as a leader in its market, earning it the patronage of major institutional investors both in the United States and Europe. Peninsula’s unique investment approach combines elements of buyout, private debt, and growth capital funds, which allows the firm to craft tailored capital solutions for businesses, including both debt and equity, and either as a controlling or non‐controlling investor.
Since 1995, the firm has closed over 120 platform investments.