ISIS invests £9m in Key Travel buyout

ISIS Private Equity’s Manchester team has invested £9m in a MBO of a travel management company.

Key Travel, which was founded in London, but has offices in Manchester and Liverpool, specialises in serving the travel requirements of the not-for-profit, academic and faith sectors.

It has exclusive negotiated contracts with airlines and hotels, proprietary IT booking tools. Clients including charities such as Oxfam and Save the Children and universities including Liverpool,  Bristol and Cambridge.

The business was founded in 1980. Turnover in 2013 will break through the £100m mark as the business continues to grow both in the UK and internationally.

The investment  will support the business as it looks to grow its presence in the UK academic market and continue its penetration of the UK charity market, by retaining its current market leading position.

The investment will also support Key as it looks to drive growth in the US, following an acquisition there in 2010.  

Pete Clarke and Nick Holder led the deal on behalf of ISIS. Mr Clarke and colleague Bevan Duncan will be joining the board at Key Travel.

Mr Clarke,said: “We have long been an admirer of Key Travel. We are already looking to invest further capital to support the ambitious growth plans of the business and have a number of potential acquisitions in our sights.”

The deal is the fourth recent investment by ISIS’ Manchester team. Other recent transactions include the acquisition of recruiter Armstrong Craven from the Work Group.

Neil Price and Kate Grimoldby from Lloyds Bank Commercial Banking’s Northern acquisition finance team provided leveraged debt to support the deal.

Other North West advisers included a team from Pinsent Masons in Manchester led by Gregg Davidson.