Global Blue Announces $225 Million Strategic Growth Equity Investment from Certares and Knighthead

EYSINS, Switzerland–(BUSINESS WIRE)–Global Blue Group Holding AG (NYSE: GB and GB.WS), the leading strategic technology and payment partner that enables retailers to improve performance while enhancing the shopper experience, is pleased to announce that it has entered into an investment agreement with CK Opportunities Fund I, LP (“CK Opportunities”), an investment fund co-managed by Certares Opportunities LLC (“Certares”), a global travel investment company, tourism and hospitality, and Knighthead Opportunities Capital Management, LLC (“Knighthead”), a leading credit investment management company. The deal is subject to approval by Global Blue shareholders at the company’s extraordinary general meeting, which is expected to take place by June 2022.

CK Opportunities has agreed to invest $225 million, including $180 million in Series B preferred stock and $45 million in common stock. The new Series B Preferred Shares will be issued at a price of $8.50 per share, a premium of approximately 62% over yesterday’s closing price of $5.24. The Series B Preferred Shares will bear an annual dividend rate of 5% and are convertible into approximately 21 million registered common shares on a one-for-one basis. The $45 million of common stock will be issued at yesterday’s closing price, which equals approximately 9 million shares.

CK Opportunities’ converted ownership in Global Blue will represent just over 13% of the total issued share capital on a fully diluted basis after the issuance of all new Series B preferred shares and registered common shares.

Global Blue intends to use the funds to continue to pursue strategic add-on acquisitions in omnichannel retail technology and to fund working capital requirements associated with the significant recovery underway in its core retail business. tax, after two years of reduced activity due to the Covid -19 pandemic.

The global reach of Certares and its subsidiaries in the travel and tourism industry, its vast portfolio of travel assets and its expertise in the field should create new opportunities for Global Blue. Knighthead’s expertise in credit and liquidity solutions to fund growth will help Global Blue capture greater market share as travel continues to recover. Tom Klein, Certares Senior Managing Director who will join the Global Blue Board of Directors, has three decades of experience operating and investing in the travel and tourism technology ecosystem, including serving as CEO and President of Saber Inc.

Jacques Stern, CEO of Global Blue, said: “We are delighted to welcome our new investors, Certares and Knighthead, a great combination of travel industry investors and innovative capital providers. This investment will allow Global Blue to take full advantage of the anticipated strong recovery in travel while pursuing our external and internal growth plans in Payment and Retail Tech.

Tom Klein of Certares added: “Global Blue is a business that is benefiting from secular growth, particularly in the luxury retail market, a cyclical upswing and accelerating opportunity as Omnichannel retailers are increasingly adopting new solutions from strategic technology partners like Global Blue. We and our partners at Knighthead look forward to working with Global Blue’s outstanding leadership team to help create value for Global Blue’s shareholders and stakeholders. »

A copy of the agreement can be obtained from the Securities and Exchange Commission’s website at www.sec.gov or the investors section of the Company’s website at Global Blue Group Holding AG – Investor Relations.

ABOUT GLOBAL BLUE

Global Blue pioneered the concept of Tax Free Shopping 40 years ago. Through continuous innovation, we have become the leading strategic partner in technology and payment, enabling retailers to improve their performance and shoppers to improve their experience.

Global Blue offers innovative solutions in three different areas:

  • Tax-free purchases: Helping retailers with over 300,000 outlets efficiently manage 35 million Tax Free Shopping transactions per year, thanks to its fully integrated in-house technology platform. Meanwhile, its industry-leading digital duty-free shopping solutions create a better and more seamless customer experience.
  • Payment Services: Delivering a full suite of currency and payment technology solutions that enable acquirers, hotels and retailers to deliver value-added services and improve customer experience across 31 million payment transactions per year to 130 000 interaction points
  • Complementary RetailTech: Delivering new technology solutions to retailers, including digital receipts and e-commerce returns, that can be easily integrated into their core systems and allow them to optimize and digitize their processes throughout the omnichannel customer journey, both in-store and online

Additionally, our data and consulting services offer strategic advice to help retailers identify growth opportunities, while our customer experience and engagement solutions provide data-driven solutions for increase attendance, convert attendance into revenue and improve performances.

For more information, visit http://www.globalblue.com/corporate/

FY 2019-20 pre-pandemic figures

ABOUT CERTARE

Founded in 2012, Certares focuses on direct investment in proprietary transactions, leveraging deep industry experience in the travel and hospitality industries, with a consistent focus on partnering with management teams to drive growth and manages approximately $8 billion in assets. Certares brings together a team with decades of operational and investment experience in private equity, travel, tourism, hospitality, and travel-related business and consumer services. For more information, please visit certares.com.

ABOUT KNIGHTHEAD

Founded in 2008, Knighthead is a diversified credit platform specializing in credit analysis, sourcing, negotiation and restructuring. Knighthead has worked to create a stable capital base to support the business and manages approximately $9 billion in assets across a variety of investment vehicles, including an evergreen long/short hedge fund, multiple vehicles closed-end lending business, a dedicated mortgage lending business and an insurance asset management business. Knighthead has offices in New York, Greenwich CT and West Palm Beach, FL. For more information, please visit www.knighthead.com.

FORWARD-LOOKING STATEMENTS

Some of the statements in this press release constitute forward-looking statements that do not relate directly or exclusively to historical facts. You should not place undue reliance on these statements as they are subject to numerous uncertainties and factors relating to Global Blue’s operations and business environment, all of which are difficult to predict and many of which are beyond Global Blue’s control. Forward-looking statements include information regarding possible or expected future operating results of Global Blue, including descriptions of Global Blue’s business strategy. These statements are often, but not always, made using words or phrases such as “believe”, “anticipate”, “could”, “can”, “would”, “should”, “should”. intention to”, “plans”, “potential”, “predict”, “will”, “expect”, “estimate”, “project”, “positioned”, “strategy”, “outlook” and similar expressions. All of these forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. that could cause actual results to differ materially from those projected in the forward-looking statements are those described below in the “Summary of Risk Factors”, in “Item 3. Key Information – D. Risk Factors” and elsewhere in the report Global Blue Annual Report on Form 20-F/A for fiscal year ended March 31, 2021 and those described from time to time in Global Blue’s future reports to be filed with the Securities and Exchange Commission.

These risks could cause actual results to differ materially from those implied by the forward-looking statements contained in this press release. Global Blue may not be able to complete the proposed transaction on the terms contemplated or other acceptable terms or at all due to a number of factors, including the occurrence of any event, change or other circumstance that may give rise to the termination of the definitive agreement governing the proposed transaction.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for Global Blue to predict these events or how they may affect Global Blue. Global Blue undertakes no obligation to update or revise any forward-looking statements after the date of this press release, whether as a result of new information, future events or otherwise, except as required by law. . In light of these risks and uncertainties, you should keep in mind that any event described in any forward-looking statement made in this press release or elsewhere may not occur.

Comments are closed.