Sale of Travelsphere
HG Capital Trust PLC
02 May 2006
The following is the text of a press release issued by HgCapital, which manages
the investment portfolio of HgCapital Trust plc alongside those of other
institutional clients.
On completion of the sale of Travelsphere Holdings Limited, HgCapital Trust plc,
a listed investment trust giving investors the opportunity to participate in all
of HgCapital's investments, will realise a total of £7.8 million.
HgCapital and other shareholders sell Travelsphere for £155 million
London 02 May 2006. HgCapital, the European sector-focused private equity
investor, together with other shareholders including management, have sold
Travelsphere Holdings Limited ('Travelsphere') to Electra Partners Europe for a
total consideration of £155 million. This is HgCapital's 10th realisation of a
leisure investment in as many years.
Travelsphere is the UK's leading direct-sell escorted tour operator serving the
over 45 age group, operating under the three brands: Travelsphere, Page & Moy
and Just You. HgCapital originally acquired a 40% stake in Travelsphere in
November 2000 for a total consideration of £20.2 million, which was invested
over the following two years. It subsequently supported Travelsphere's
acquisition of Page & Moy in November 2004.
Following the sale, HgCapital's investment in Travelsphere will have returned
£50.1 million to clients.
HgCapital has worked with Travelsphere through some of the most turbulent years
in the international travel sector. During this time the business has continued
to grow and, with its acquisition of Page & Moy, cemented its position as the
UK's leading escorted tour operator for its target demographic. Under
HgCapital's ownership, revenues of the Group have more than doubled from £82
million in 2000 to £169 million in 2005.
Ben Hewetson, Director and Head of Leisure Investments at HgCapital said:
'Travelsphere is an exceptional business and has grown considerably since our
initial investment just over 5 years ago. The group has extended its product
range and now offers escorted travel to over 70 countries. It is firmly
established as the market leader in the escorted travel segment to its target
audience. With its strong presence in the longer haul markets, the group is now
well positioned to take advantage of the growing trends in the travel sector.'
Mark Watts, Managing Director of Travelsphere commented:
'Travelsphere has benefited considerably from HgCapital's involvement. They have
provided invaluable support through what has been an extremely challenging time
for the travel market. Their hands-on approach, combined with real expertise in
the travel sector has meant we have emerged from this difficult time a
significantly stronger business. We look forward to working with our new owners
in the next phase of our development.'
HgCapital was advised by UBS (financial), Lovells (legal) and Deloitte
(accounting). Management were advised by PricewaterhouseCoopers.
Enquiries
HgCapital
Ben Hewetson Tel: +44 (0)20 7089 7892
Travelsphere
Mark Watts Tel: +44 (0)1858 414 039
Maitland
Suzanne Bartch/Peter Ogden Tel: +44 (0)20 7379 5151
This information is provided by RNS
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