PADI to be sold for $1 billion?

Bloomberg – the world’s largest news agency specialising in providing information on financial markets, reports on plans to sell Professional Association of Diving Instructors by Providence Equity Partners. According to people familiar with the details of the matter, the potential transaction would generate a profit of $1 billion!

Providence Equity Partners is working with Deutsche Bank AG on the subject of finding a buyer for Rancho Santa Margarita in California – the headquarters of PADI, according to the agency. Bloomberg cites its source, who wishes to remain anonymous as he is not authorised to speak publicly about the matter. According to the information received, the transaction is expected to take place later in the first quarter of 2017.

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Providence acquired a majority stake in PADI from Lincolnshire Management in 2015. At the time, it focused the organisation’s efforts on developing markets in Asia, with a particular focus on Indonesia and Malaysia. In an era of massive capital investment by investors from China or Indonesia, this play could prove crucial in the search for a potential buyer.

Both Providence and Deutsche Bank representatives declined to comment on the matter.

PADI was founded in 1966. It was founded by John Cronin and Ralph Erickson, whose aim was to raise standards and make diving more accessible by organising appropriate courses and training. Today, PADI is the leading organisation training divers and setting the standards for recreational diving.

Source: bloomberg.com