Acquisition of Meininger
Tuesday 30 November 2010: For immediate release
HOLIDAYBREAK
Acquisition of a 50% stake in student and school tour accommodation group Meininger
Holidaybreak, the education, leisure and activity travel group, today announces that its subsidiary, PGL Travel Limited, has reached agreement to acquire a 50% stake in Meininger Holding GmbH, a leading German-based student and school tour accommodation group, from the executive directors who own the company: Nizar Rokbani, Oskar Kan and Sascha Gechter. These directors will continue to run the company, supported by the Education & Adventure Division.
The consideration for the 50% stake is €36.5m (£30.9m) and this may be subject to adjustment (but capped at €40.0m (£33.9m)) following finalisation of the audited accounts of Meininger Holding GmbH for the year ended 30 September 2010. Holidaybreak has the option to acquire the remaining shares in Meininger over the next two to three years.
Meininger provides bespoke accommodation tailored specifically for school tours and youth groups and located close to the key city centre cultural locations in Germany, the UK and Austria. Headquartered in Berlin, it currently employs over 250 staff and operates a total of ten properties in Berlin, London, Vienna, Munich, Frankfurt, Cologne and Hamburg. The business has grown rapidly with four sites opening in the last three years increasing bed capacity by 60% to a total of 3,800 beds. A further five sites are expected to open in 2011 and Meininger will look to expand its offering to other key European school trip destinations as part of Holidaybreak's Education & Adventure Division.
In the calendar year 2009, the Meininger group had unaudited revenues of €16.0m (£13.6m) and unaudited EBIT of €5.1m (£4.3m). In the year to 30 September 2010, the Meininger group had unaudited revenues of €23.2m (£19.7m) and unaudited statutory EBIT of €8.3m (£7.0m) (adjusted EBIT of €7.3m (£6.2m)). Unaudited net assets of the Meininger group at 30 September 2010 were €10.0m (£8.5m). The sellers have since declared and paid a pre-completion dividend of €5.4m (£4.6m). Meininger is a strongly cash generative business.
Meininger enjoys a relatively high visibility in bookings. As at 29 November 2010 Meininger had taken €7.8m of forward bookings for 2011 (2010: €7.1m).
The consideration will be paid in cash, using Holidaybreak's existing bank facilities. The transaction, which is expected to be earnings enhancing for Holidaybreak in the current financial year (see Note 2), is expected to complete in December 2010.
Should Holidaybreak choose to exercise its option to acquire the remaining shares in Meininger over the next two to three years, the price potentially payable for the remaining shares will be dependent upon the performance of the Meininger business over the period.
Martin Davies, Holidaybreak Chief Executive, said:
"This is a great transaction for Holidaybreak. Our goal is to become the leading brand in the European school trips market, covering all the major destinations such as Paris, London, Berlin, Amsterdam and Milan. Meininger takes us a step closer to that goal.
Education has been core to our business for some time and remains central to the Group's plans for profitable growth, through consolidation and extension of our market-leading UK position and by taking our core skills to new markets and products, particularly in Europe.
This transaction represents the acquisition of a good business in our key growth area. Suitable accommodation for school groups is limited in supply; Meininger fills the gap, offering flexible bed and room structures ideal for school groups. NST has built a successful long-term relationship with Meininger and we will be able to add to the products we currently offer through NST, PGL, European Study Tours and Travelplus.
Strategically, Meininger fits with our core competencies in property, hospitality and safety management for children and school groups. It also secures a growing earnings stream with major potential for further growth outside of Germany and gives Holidaybreak the potential for further development in school tours and activities in various European markets."
Sascha Gechter, Meininger, said:
"I am delighted that we are joining the Holidaybreak Group. Our school trip accommodation offering has proved compelling to schools since opening the first property in 1999 and we share Holidaybreak's view that the growth potential is great. With the support and encouragement of Holidaybreak, there is a real opportunity to build a clear leader in the European school-group hospitality market."
Note 1: All Euro balances have been converted to Sterling at the current spot exchange rate of 1.18.
Note 2: This statement should not be taken to mean that the earnings per share of Holidaybreak plc will necessarily match or exceed the historic reported earnings per share of Holidaybreak plc and no forecast is intended or implied. The statement contains certain forward-looking statements. These statements are made by the Directors in good faith based upon the information available to them up to the time of their approval of this announcement and such statements should be treated with caution due to the inherent uncertainties underlying such forward-looking information.
Enquiries:
Holidaybreak +44 (0) 1606 787100
Martin Davies
Brunswick +44 (0)20 7404 5959
holidaybreak@brunswickgroup.com
Catherine Hicks / Craig Breheny / Oliver Hughes
Note to Editors
Holidaybreak (HBR.L) is an education and activity travel group listed on the London Stock Exchange. The Group's businesses have market leading positions in the UK and other major European markets, organising educational and activity trips, worldwide exploratory trips, outdoor family holidays and short breaks. For more information, please go to www.holidaybreak.co.uk.
This information is provided by RNS
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