TBO to acquire US luxury travel firm Classic Vacations for $125 million

Gurugram-based travel distribution company TBO introduced its settlement to accumulate US-based Classic Vacations from Phoenix-based funding agency The Najafi Firms on Wednesday. TBO stated the acquisition was for an estimated $125 million.

The corporate stated the acquisition brings collectively TBO’s expertise platform and worldwide stock with Traditional Holidays’ community of luxurious journey advisors and suppliers. Traditional Holidays delivered income of $111 million and an working EBITDA of $11.2 million within the fiscal yr ended December 31, 2024.

TBO stated its growth into serving the premium outbound travel market aligns strategically with Traditional Holidays’ B2B model and ‘high-value’ advisor community.

“We’re thrilled to carry Traditional Holidays into the TBO household – the corporate’s longstanding supply of excellent providers has earned the belief of its greater than 10,000 journey advisors within the U.S., and their finish clients, making them a seamless match for our imaginative and prescient shifting ahead within the fast-evolving journey and tourism business,” stated Gaurav Bhatnagar, TBO’s co-founder and joint managing director. “Traditional Holidays is led by a robust group of consultants and can proceed as an unbiased model whereas leveraging TBO’s expertise and distribution capabilities to develop their enterprise,” he added.

Ankush Nijhawan, co-founder and joint managing director of TBO, stated this acquisition continues to additional the corporate’s technique to put money into each natural and inorganic development alternatives. “As we begin engaged on integrating Traditional Holidays with TBO, we are going to stay open to related strategic alliances going ahead,” he added.

“We’re excited for this subsequent part in our firm’s journey – TBO’s tech-centric options are geared totally towards our journey advisor neighborhood,” stated Melissa Krueger, CEO of Traditional Holidays. “TBO connects us to its first-class expertise platform, in contrast to what the wholesale market has ever had entry to, permitting us to carry much more sources, instruments, and insider connections to our valued journey advisors.”Traditional Holidays was purchased by The Najafi Firms in 2021 from Expedia Group.“This acquisition and partnership is a pure subsequent step for our portfolio firm Traditional Holidays, and we’re completely satisfied to have labored efficiently with them for the final 4 years, maximizing the corporate’s strengths and experience in luxurious journey. With a confirmed observe document of delivering worth to companions and vacationers alike, Traditional is uniquely positioned to guide the business ahead, constructing on its legacy of efficiency for years to return,” stated Jahm Najafi, founder and CEO of The Najafi Firms.

Moelis & Firm LLC acted as unique monetary adviser, and Ballard Spahr LLP acted as authorized advisor to Traditional Holidays on this transaction. Cooley LLP served as authorized advisors, and PwC had been the monetary and tax advisors for TBO.