A statement on CVC’s website confirmed it had bought out 100% of Experimento’s shares for just over R$41m (US$12.8m) from the company’s founders.
“The Experimento acquisition will complement our portfolio and further strengthens our relationship with trading partners”
“The Experimento acquisition allow us to expand the CVC student exchange programmes segment and with the CVC Intercâmbio brand will complement our portfolio and further strengthens our relationship with trading partners and distribution channels,” Pedro Aparicio, CVC Group treasurer and investor relations, told The PIE News.
CVC moved into the study travel sector in January 2016 with a new division focused on language travel, led by industry veteran Santuza Bicalho as director. It has since opened student-facing high street shops to promote the offering.
The latest acquisition will open the company up to a broader segment of the study travel market. Experimento offers high school, university and vocational programmes overseas, as well as language courses and holiday programmes.
It also provides opportunities to work abroad, including au pair positions and work/study programmes.
CVC aims to expand the Experimento brand by opening up 30 new stores in Brazil over the next three years, Aparicio said.
“The alliance between the most respected student exchange company and the largest travel operator in America will bring an extraordinary competitive advantage in the Brazilian market, providing innumerable growth opportunities for both companies,” a CVC spokesperson added.
The price for the deal is subject to adjustment based on Experimento’s 2016 Q4 EBIDTA, as well as its net cash and working capital as of the end of the year.
Half of the acquisition price has been paid in cash, with the rest of the sum to be paid in two annual instalments in 2017 and 2018.
Experimento, which was founded in 1964, will retain its branding and its two founders, CEO Patricia Zocchio, and executive director Roberta Zocchio, will remain in their roles.
“The Experimento and CVC Intercâmbio brands will continue to operate independently, keeping the strategic positioning and taking advantage of business synergies,” Aparicio said.