UK/INTERNATIONAL. Global investment management company Davidson Kempner Capital Management LP (DK) has struck an agreement to acquire 100% of cruise retail specialist Harding from Flemingo International.
The move secures the future of the UK-based maritime retail specialist as the cruise industry begins a slow recovery from the COVID-19 crisis.
As part of the arrangements, Harding will benefit from funding provided by Davidson Kempner’s affiliated asset-lending platform, Breal Zeta Commercial Finance. Harding Managing Director James Prescott will continue to lead the Harding management and staff teams.
The agreement, said the partners, follows months of commercial discussions about the long-term prospects for cruise, with a deal agreed on the basis of Harding management’s solid track record and business plan – allied to its strong growth trajectory of recent years.
The investment, they added, “provides certainty” for the cruise retailer and “will enable Harding to fast track its business plan with a goal to grow its share of the cruise market and to cement its position as the leading cruise retailer for innovation and guest experiences”.
Prescott said: “The deal announced today puts Harding on a secure footing, enabling us to face these uncertain times with confidence, and to strengthen our plans for when our customers can sail again. We believe that the long-term future of cruise, and for the Harding business is incredibly bright.”
Comment: This move helps secure the future for Harding and ensures its status as a highly competitive force in the cruise retail channel.
New owner DK (whose Breal Zeta division has been providing funding to Harding since January this year) has over US$33 billion in assets under management worldwide, putting Harding in a solid position to consolidate and expand in the world of cruise retailing.
Before the crisis struck, Harding had established a strong market position, defending key contracts and winning others over the past two years, underlining its status as a creative and credible partner for cruiselines. As the crisis eases over time, this extended financial backing looks set to help the business consolidate and build on that platform.
Flemingo, led by owner Atul Ahuja, took great pride in the achievements of its Harding division, and Flemingo’s entrepreneurial drive helped nurture Harding’s growth over recent years. Now the business is taking its next steps with fresh backing in a different and deeply challenging trading environment. With senior management and company structures remaining in place, the new owners look likely to ply a steady course, supporting what is already a lean, efficient business in its push for further growth once the market returns.
