Crestview Partners has completed the acquisition of Tailwind Hospitality, an aviation services company focused on food, beverage, and retail concessions in non-hub and regional airports, from Palladin Consumer Retail Partners. Financial terms were not disclosed.
Crestview is investing alongside AltitudeX Aviation Group and members of Tailwind’s existing management team. Tailwind will continue to be led by Jeff Switzer, and Crestview and AltitudeX representatives are expected to join Tailwind’s board alongside Switzer and independent former concessionaire leaders.
Founded in 2004 and headquartered in Wilmington, North Carolina, Tailwind operates across more than 60 locations in the United States, providing a mix of locally tailored concepts and national brands to serve airport partners and passengers. The company said it currently operates more than 160 revenue centers across more than 60 airports and train stations and is the sole concessionaire at most of those locations.
Crestview described the aviation and airport services market as an attractive post COVID investment area and said it views Tailwind as a differentiated market leader with runway for both organic expansion and acquisitions, supported by changes in travel priorities, evolving passenger expectations, and consumer purchasing behavior that are pushing airports and airlines to emphasize the customer experience.
Support: Advisors on the transaction included Greenberg Traurig LLP as legal counsel to Crestview, Solomon Partners as financial advisor, and Latham & Watkins LLP as legal counsel to Palladin and Tailwind. Media inquiries were directed to Kekst CNC.
KEY QUOTES:
“Palladin has been a great partner, helping us strategically expand into new markets, integrate multiple acquisitions, develop new sites through awarded RFPs and transform the company by adding resources and systems for growth. We look forward to continuing our growth trajectory in partnership with Crestview and AltitudeX Aviation Group and, it is important to note that, our leadership team and commitment to delivering best-in-class service to our airport partners will not change.”
“We are incredibly excited to partner with Crestview as we pursue the next phase of Tailwind’s growth. Crestview’s and AltitudeX’s significant experience and expertise in our industry and scaling businesses make them a strong fit for our platform, and we believe this partnership will enhance our ability to serve our airport partners, brand partners, and teams across the country. We have enjoyed building the company with Palladin and thank them for their years of collaboration. Importantly, our day-to-day operations and commitment to delivering best-in-class service to our airport partners will remain unchanged, and we look forward to continuing to build Tailwind with the same focus and discipline.”
Jeff Switzer, CEO of Tailwind
“It has been a pleasure working with Jeff Switzer, Jeff Pike, CFO, and the entire Tailwind team during this period of exceptional growth.”
Mark Schwartz, CEO of Palladin
“The team has been receptive to innovations and structure that have enabled us to significantly increase our market share. We look forward to watching their continued success.”
Rob Fioretti, Managing Director of Palladin
“We believe Tailwind is a differentiated market leader providing comprehensive service in its niche focus areas with significant potential for expansion. We identified the aviation and airport services market as an attractive area for investment post-COVID. We believe Tailwind is poised to benefit from strong secular tailwinds and a growing captive customer base as shifting travel priorities, evolving passenger expectations and purchasing behavior trends drive airports and airlines to focus more on the customer experience. Jeff and the rest of the management team have done an excellent job leading the business and we are thrilled to partner with them to help drive the Company’s next phase of organic and acquisition growth.”
Bradford Williams, Partner and Co-Head of Industrials at Crestview
