The Abercrombie & Kent Travel Group (ATKG) has attained a substantial $500 million in financing from Citi, marking a pivotal step in its global expansion strategy.
- This financing initiative will facilitate the development of new Destination Management Companies (DMCs) and various physical assets, such as camps and lodges, in both existing and emerging markets.
- Abercrombie & Kent plans to invest significantly in digital infrastructure, enhancing their global website, booking systems, and agent portal to create an advanced digital experience.
- The funding agreement also supports the consolidation and restructuring of existing legacy financing arrangements, leading to improved lending terms.
- Executive leaders express optimism regarding this development, viewing it as an opportunity to unlock further growth potential for the company.
The Abercrombie & Kent Travel Group (ATKG) has secured a remarkable $500 million in financing through global investment bank Citi. This significant financial backing marks a crucial development in Abercrombie & Kent’s strategy to expand its global presence.
The newly acquired funds will support the establishment of new Destination Management Companies (DMCs) and the enhancement of existing physical assets such as camps, lodges, and riverboats. These enhancements are planned in both existing and new markets, including specific plans to inaugurate new DMCs in Mexico and Indonesia this year, expanding the already extensive network of 56 offices in 34 countries.
Moreover, Abercrombie & Kent aims to invest robustly in their back-office systems, part of which includes the construction of a “world-leading” digital infrastructure. The revamped structure will encompass a new global website, a centralised booking system, and an agent portal, all of which are to be supported by a custom CRM platform, thereby improving the digital experience for clients and partners.
The financing, underwritten by Citi, not only allows for these expansions but also assists in consolidating and restructuring existing legacy financing deals, resulting in improved lending terms. This agreement is a continuation of the “One A&K” strategy dedicated to augmenting their owned assets on a global scale.
In a statement reflecting on the longstanding relationship with Citi, Manfredi Lefebvre d’Ovidio, AKTG executive chairman, lauded the partnership’s role in building robust business ventures and facilitating growth worldwide. He expressed enthusiasm about the subsequent chapter this financing opens for Abercrombie & Kent.
Cristina Levis, AKTG chief executive, acknowledged the rapid and efficient negotiation by their finance team under Andrew Burrett’s leadership. She reiterated Citi’s unwavering support, emphasising the shared belief in the growth potential of Abercrombie & Kent and its affiliated entities.
The new financing catalyses Abercrombie & Kent’s efforts in strengthening its global footprint and modernising its operational capabilities.
