Carlyle, Others Buy Stake in Amex Corporate-Travel Business
December 17 2019 - 11:52AM
Dow Jones News
By AnnaMaria Andriotis
Private-equity firm Carlyle Group LP and others are taking a
stake in American Express Global Business Travel, in an equity
recapitalization deal that values the company at $5 billion,
including debt, according to a person familiar with the matter.
New investors include Carlyle Global Partners, Singapore's
sovereign-wealth fund GIC, the University of California Office of
the Chief Investment Officer of the Regents and Kaiser
Permanente.
The business offers travel services mostly to large and midsize
businesses that need to book airfare and hotel rooms.
The business was owned entirely by Amex until 2014 when the card
company sold off a 50% stake to a group of investors led by
Certares LP that invested $900 million at the time. The investment
was intended to improve technology and increase its acquisitions in
the travel and management space. Amex wanted to make the unit more
nimble as it faced increased competition from online travel-booking
sites.
The size of the new investment couldn't immediately be
determined. Amex will retain its 50% ownership stake.
Other investors include the Qatar Investment Authority and funds
managed by BlackRock Inc.
Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com
(END) Dow Jones Newswires
December 17, 2019 11:37 ET (16:37 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
American Express (NYSE:AXP)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Express (NYSE:AXP)
Historical Stock Chart
From Apr 2023 to Apr 2024