Sygnus Deneb Investments (SDI), the private equity investment company managed by Sygnus, has announced the completion of a US$4 million equity investment in Chukka Caribbean Holdings effective October 7, 2022.
The investment was made through the issuance of Convertible Preference Shares that will help the company to continue its strategic expansion and deepen its regional footprint, providing world-class nature adventure excursions across the Caribbean.
“This investment in Chukka is directly aligned with Deneb’s strategy to provide growth capital to middle market firms with established track records to catalyse their growth and strengthen their capital structure and balance sheet” stated Ike Johnson, Chief Operating Officer, Co-Founder and Head of Private Equity and M&A at Sygnus Group.
The Chukka Group is one of the leading Nature Adventure Tour Operators in the Caribbean. With a commitment to delivering the highest quality tours with well-trained guides and stringent safety standards, the company takes pride in showcasing the natural beauty of the Caribbean through unique and sensational experiences and providing opportunities for local residents and businesses.
Today, Chukka operates over 85 tours in five countries, namely Jamaica, Belize, Turks & Caicos, the Dominican Republic and Barbados, including eight cruise ship ports.
Chukka expanded its reach in 2020 by acquiring Resort Solution Ltd which operates the largest Watersports company in Jamaica from 9 major resorts on the North Coast.
The company also offers other services to resorts such as the Tour Desk and Gift Shop at the renowned Round Hill Hotel and Villas and the Valet Parking Desk, Concierge/Tour Desk and Airport Transfers at the newly opened ROK Hotel in Downtown Kingston.
Marc Melville, CEO of Chukka Caribbean Adventures shared, “We have a growth strategy, and we see a lot of opportunity and untapped potential in the region and many outstanding natural assets that people want to experience. In order for us to fully capitalise on all of these opportunities and further grow our business we thought private equity would be the right way to go. Finding the right private equity partner is no different than finding the right business partner. What we have found in the Sygnus team is the same as our own Chukka DNA, they understand people, focus on partnership, are visionaries and growth-oriented.”
SDI is a regional Private Equity (PE) investment company managed by Sygnus and is dedicated to providing equity and mezzanine capital in the key growth industries regionally. It targets investments in medium-sized companies with revenue ranging from US$5 million to US$50 million.
The fund typically invests in private companies via equity, convertible preference shares, subordinated debt, and other hybrid securities with equity components.
The investment in Chukka is the second portfolio investment by Sygnus Deneb, with the first being Aruba Wine and Dine made in 2020.
Sygnus Deneb has a robust pipeline of opportunities valued at almost US$100 million, which includes industries such as logistics, energy, maritime, retail, manufacturing and distribution, and we are looking to close additional deals before the end of the year.