Salford cruise company acquired by German tour operator Dreamlines

Germany-headquartered online travel agency (OTA) and tour operator Dreamlines has snapped up North West firm Cruise1st.

Dreamlines confirmed this morning (May 17) that it acquired 100% of the Salford-based cruise specialist’s share capital.

The transaction marks Dreamlines’ first foray into the UK cruise market.

The online portal already operates across Germany, Switzerland, Austria, Netherlands, France, Italy, Russia, Brazil, US, Australia and Singapore.

The addition of Cruise1st‘s 180-strong team to Dreamlines has brought the OTA’s global workforce to over 400 staff.

The combined GMV (gross merchandise volume) of all brands under the Dreamlines group, including Cruise1st, amounted to more than €320m in 2017. This year, the company is forecasting that figure to hit €400m, which would make it the biggest OTA outside the US.

Cruise1st CEO Daniel Townsley commented, “The synergies between Cruise1st and Dreamlines were too great to overlook.

“Combining a hugely successful global OTA with our own proficiency and database of customers in the UK, Australia and Singapore will drive higher sales volumes and margins and deliver huge growth for the business.”

Dreamlines MD Felix Schneider said: “Entering the UK, the world’s third biggest cruise market by volume, is an important milestone within our global strategy.

“We are expanding our role in the market and will strengthen our position as the cruise OTA with the widest global footprint.”

He added: “Cruise1st enables us to offer our customers even more unique cruise holiday products and will grow our operator business, a key factor for our future success.”

The value of the acquisition was not disclosed.

Alexander Frolov, general partner at investment firm Target Global, an early backer of the Dreamlines business, said of the deal: “We strongly believe in German marketplace companies that go global and we are impressed by the international growth of Dreamlines that is managed out of Hamburg.

“The acquisition of Cruise1st and the entry into new key markets shows Dreamlines’ ambition and capability to become a global leader.”

Law firm Dentons provided legal due diligence to Dreamlines along with corporate and tax advice. Professional services giant EY provided financial and tax due diligence.

The EY team was led by Thomas Prüver, Mark Hemming, Stuart Thwaites, Leo Brown, Jörg Stefan Brodersen and Adele Hickling.

Commenting on the transaction, Stuart Thwaites of EY said: “This deal is a great example of a European headquartered company investing in the UK and it shows that the market continues to be strong, despite talk of Brexit uncertainty.

“The acquisition of Cruise1st is a smart move for Dreamlines as it will give the company solid brand recognition within the UK marketplace – a great platform for its exciting future growth plans.”

He added: “Being based in Manchester myself, it’s always rewarding to work on a deal with local North West connections, knowing that it will mean more investment into the region.”

Accountancy firm White Hart Associates provided financial, tax and regulatory advice to Cruise1st, with Mundays advising the company’s shareholders on transaction, corporate and SPA matters.

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