(Kingston, Jamaica) Sygnus Deneb Investments Limited (“SDI”), the Private Equity investment company managed by Sygnus, the Caribbean’s leading alternative investments firm has announced the completion of a US$4 Million equity investment in Chukka Caribbean Holdings (“CCH”) 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 deliver 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. Chukka is rooted in an entrepreneurial spirit, supported by strong family values, employee and partner loyalty, and the best-trained staff in the Caribbean. Today, Chukka operates over 85 tours in 5 countries, namely Jamaica, Belize, Turks & Caicos, the Dominican Republic and Barbados, including 8 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, O.D., 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.”
He added, “Sygnus and Chukka have a longstanding relationship and partnership built over the last 5 years. We are very excited with them coming onboard and the timing is perfect as we are poised for further expansion and deeper development of our existing locations.”
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. SDI 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 objective of the Company is to provide investors with attractive equity returns by strategically investing equity capital in the form of growth capital, buyouts, and turnarounds in a portfolio of companies across the region
Stephen Wright, Assistant Vice President for Private Equity and M&A stated, “I am excited for Sygnus Deneb to be partnering with Chukka, a well-run regional company with a strong track record that has a positive impact on lives and economies in the region and represents the Caribbean brand well. The company has diversified revenue streams, including geographic diversification, which provides a hedge against risks in individual markets.”
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$100M, that 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,” added Wright.
