Oaktree Capital fuels Apollo Group with 'transformative' investmentOaktree Capital fuels Apollo Group with 'transformative' investment

The Apollo Group, a longtime provider of cruise management and hospitality services, announced a 'transformative' investment by Oaktree Capital.

Was family-owned since 1969

Founded in 1969 by Rafael A. Ordonez as Apollo Ship Chandlers, the Miami-based company had been family-owned and operated prior to its Oaktree partnership.

The amount and terms were not disclosed, but Apollo said this change will enable it to 'continue to provide best-in-class service to its existing customer base while expanding its capabilities in food and beverage distribution.'

'Oaktree’s significant capital resources and experience in hospitality management will be critical to achieving Apollo’s strategic growth plan,' Apollo CEO Ramon Barrera said. As the company sought potential partners, 'Oaktree stood out because of its hands-on approach and storied history of successful investing in F&B and hospitality management companies.'

Oaktree, with more than $205b in assets under management, holds a majority stake in The Ritz-Carlton Yacht Collection.

Cruise line clients

Apollo provides crew management, food services, food and beverage distribution, procurement and logistics to a range of cruise lines.

Clients include Virgin Voyages, Oceania Cruises, Regent Seven Seas Cruises, Marella Cruises and Cordelia Cruises.

Opportunity for 'significant expansion'

'Apollo Group and its management team have achieved impressive results and established themselves as the go-to supplier for hospitality services in the cruise industry. With our investment and partnership, we believe Apollo will be able to significantly expand its footprint and service offering to enhance the value it is already bringing to its blue-chip customer base,' said Jared Frandle, managing director for Oaktree’s Special Situations Strategy.

'We are very excited to partner with Jose and his team and see significant opportunity for Oaktree to work hand-in-hand with the management team to expand Apollo’s capabilities,' added Matt Wilson and Jordon Kruse, co-portfolio managers of Oaktree’s Special Situations Strategy. 'The cruise industry has significant tailwinds, and we believe Apollo is well positioned to capitalize given the critical nature of their service offering and leading market position.'

Advisors

Regions Securities served as the exclusive financial advisor to The Apollo Group, and Holland & Knight served as legal advisor to The Apollo Group. Latham & Watkins served as legal advisor to Oaktree.