Global Blue Group Holding AG (NYSE:GB) will look for add-on acquisitions. Global Blue reported that it has entered into an investment agreement with CK Opportunities Fund I, an investment fund co-managed by Certares Opportunities, a travel, tourism and hospitality investment firm, and Knighthead Opportunities Capital Management, a credit investment management firm. CK Opportunities has agreed to invest $225 million, of which $180 million is for Series B preferred shares and $45 million is for common shares.

The new Series B preferred shares will be issued at a price of $8.50 per share, a premium of approximately 62% to yesterday's closing price of $5.24. The Series B preferred stock will carry a 5% annual pay-in-kind dividend rate and are convertible into approximately 21 million registered common shares on a one-for-one and basis. The $45 million of common stock will be issued at yesterday's closing price, translating to approximately 9 million shares.

Global Blue intends to use the funds to continue pursuing strategic add-on acquisitions in omnichannel Retail Technology and to fund working capital requirements associated with the significant recovery underway in its core Tax-Free Shopping business, after two years of reduced activity due to the Covid-19 pandemic.