Information on the Target

Founded in the 1970s by the Giondi family, Club del Sole has established itself as the premier open-air tourism operator in Italy. The company is headquartered in Forlì and currently manages 23 villages across seven regions of the country, demonstrating significant regional presence and operational expertise in outdoor hospitality.

Club del Sole focuses on providing high-quality camping experiences and accommodations, catering to a diverse clientele seeking leisure and relaxation in nature. With a commitment to enhancing customer experiences and expanding its offerings, the company continues to innovate in the open-air tourism sector.

Industry Overview in Italy

The open-air tourism industry in Italy has seen robust growth over the past few years, driven by increasing domestic and international travel trends. The country’s rich cultural heritage, stunning landscapes, and favorable climate make it a prime destination for leisure activities, significantly boosting the demand for outdoor accommodations.

In recent years, the preference for outdoor experiences has surged, particularly among families and younger travelers, leading to a trend towards camping and caravanning. This shift has presented unique opportunities for operators like Club del Sole to capitalize on evolving consumer behaviors and preferences.

The Italian government has also been promoting tourism and outdoor recreation, making efforts to improve infrastructure and accessibility to tourist sites, which supports industry growth. Additionally, ongoing investment in sustainable tourism practices aligns with global trends, enhancing Italy's attractiveness as a premier open-air destination.

Overall, the open-air tourism segment in Italy is positioned for continued growth, presenting a fertile landscape for operators willing to innovate and adapt to market demands.

The Rationale Behind the Deal

The acquisition of a approximately 30% minority stake in Club del Sole by TEC Holiday S.p.A. aligns with the burgeoning opportunities in open-air tourism. The investment comes with a strategic plan for capital increase, aimed at supporting the company’s future growth initiatives.

This partnership not only enhances TEC Holiday's portfolio but also allows for organic growth potential within Club del Sole, particularly through improving revenue management practices and replacing traditional pitches with mobile homes, thus augmenting both revenues and profit margins.

Information about the Investor

TEC Holiday S.p.A. is an established player in the tourism sector, focusing on the leisure and hospitality markets. With a commitment to strategic investments in high-potential companies, TEC aims to foster growth and innovation within its portfolio.

In addition to its investment in Club del Sole, TEC Holiday has a track record of supporting businesses that are poised for expansion in the tourism industry, leveraging its expertise to enhance operational efficiency and market reach.

View of Dealert

This investment in Club del Sole represents a promising opportunity in the open-air tourism market. The overall growth prospects in Italy, combined with the company's established brand and operational management, signal a favorable outlook for returns.

With the Giondi family retaining majority voting rights and continued leadership, there is confidence in the strategic direction of the company, paving the way for innovative growth strategies that can optimize revenue potential. Moreover, enhancements in revenue management and the introduction of mobile homes can significantly increase the occupancy rates and average revenue per pitch.

Given the positive market trends and the strategic initiatives planned, this partnership is poised to not only bolster TEC Holiday's market position but also to contribute substantially to the diversification and sustainability of Italy's tourism landscape.

Therefore, this deal appears to be a strong investment, with the potential for both immediate and long-term benefits, making it an attractive proposition in a growing industry.

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