Target Information

The target of the recent acquisition is GfR (Gesellschaft für Reisevertriebssysteme mbH), a call center operator specializing in the travel sector. As a 100% subsidiary of the now-insolvent Thomas Cook Touristik GmbH, GfR is based in Bochum, Germany. It provides essential services for the travel industry, making it a critical component of the former Thomas Cook enterprise.

With this acquisition, GfR has been placed under the leadership of Philip Borbély, a renowned turnaround manager with a proven track record. His familiarity with the DUBAG team, which advises LEO II GmbH & Co KG, positions GfR for a successful transition and revitalization.

Industry Overview

The travel industry in Germany has faced significant challenges in recent years, particularly due to the impacts of the COVID-19 pandemic, which resulted in widespread travel restrictions and a steep decline in customer demand. However, as travel begins to recover, there is optimism for a rebound in tourism and travel-related services.

Germany remains one of the largest travel markets in Europe, characterized by a highly competitive environment featuring numerous established players and emerging startups. The growth potential in this sector is enhanced by the increasing use of digital technologies, which streamline bookings and improve customer engagement.

Moreover, the demand for personalized travel experiences and tailored customer service is on the rise. Companies that can adapt to these changes by enhancing their service offerings stand to benefit from the growing trend of travelers seeking expert advice and assistance in planning their trips.

GfR, backed by its expertise in call center operations for the travel industry, is well-positioned to capitalize on these emerging trends, provided that it can effectively leverage its resources under new ownership.

Rationale Behind the Deal

The acquisition of GfR by LEO II GmbH & Co KG represents a strategic move to secure a vital player in the travel industry, particularly at a time when the sector is poised for recovery. By acquiring GfR, LEO II aims to stabilize and revitalize the operations of the company, preserving over 500 jobs, which constitutes about half of the workforce previously employed by Thomas Cook.

Furthermore, the combination of Philip Borbély’s turnaround expertise with DUBAG’s investment strategy is expected to drive operational efficiencies and foster innovation within GfR, allowing it to better meet the demands of a changing market.

Investor Information

LEO II GmbH & Co KG is a private equity fund that was established in 2019, focusing exclusively on underperforming companies with turnaround potential. The fund is advised by DUBAG (Deutsche Unternehmensbeteiligungen AG), which specializes in the acquisition and restructuring of mid-sized companies. This investment approach highlights a commitment to creating value through effective management strategies and operational enhancements.

Having a dedicated team of advisors and turnaround specialists enables LEO II to implement necessary changes swiftly, providing GfR with the support it needs to navigate its recovery period successfully and emerge as a competitive player in the travel sector.

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In our expert opinion, the acquisition of GfR by LEO II GmbH & Co KG could potentially be a sound investment, given the circumstances surrounding the travel industry’s recovery. By preserving a significant number of jobs and retaining the expertise within GfR, the new ownership is taking proactive steps to stabilize operations during a critical phase.

Moreover, the focus on turnaround management, led by Philip Borbély, introduces a strong strategic framework for revitalizing GfR's operations. His track record in the industry suggests that GfR could successfully adapt to the evolving demands of consumers, especially as travel begins to recover.

However, the venture is not without risks; the travel industry remains sensitive to fluctuations in demand due to external factors such as economic conditions and public health crises. Continued investment in technology and customer service will be essential to ensure GfR remains competitive in a rapidly changing landscape.

Overall, while challenges exist, the potential for GfR to re-emerge as a significant entity in the travel industry under this new ownership provides a compelling reason to view this investment as promising.

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