Travel group Riviera backed by Phoenix Equity Partners

BURTON on Trent-based Riviera Travel has received investment from private equity firm Phoenix Equity Partners.

Riviera, a provider of overseas escorted tour holidays and river cruises, will be led by David Clemson who joined the business in 2008 and continues as managing director. Michael Wright, the founder of Riviera, will remain with the business as a non-executive director and as a significant shareholder. 

Terms of the transaction are not disclosed.

Riviera, founded in 1984, has grown impressively over the past few years, delivering turnover growth of more than 20% per annum. In 2014, Riviera carried more than 115,000 passengers.

It operates in the high growth escorted tour and river cruise segments. Core customers are typically over 50s travellers.

Manchester-based Phoenix Equity Partners invests in medium-sized companies. Its investment portfolio includes West Midlands businesses such as auto parts supplier Andrew Page and logistics firm Palletways.

Speaking about its latest deal, Riviera founder Wright said: “Phoenix is very experienced at partnering with founder-owned businesses. Together, we shall continue to focus on providing exceptional service for our loyal customers, developing our successful portfolio of tours and river cruises, and creating opportunities in the business for staff at all levels.”

David Burns, managing partner at Phoenix, said: “Riviera is an exceptional company, with a wonderful culture and very loyal customers. We are delighted to be partnering with Michael and David, and to be investing to grow the business.”

Matt Waddell, corporate finance partner at PwC in the Midlands, who led the advice to Riviera’s shareholders, said: “Riviera is an outstanding business with great growth prospects and this investment will allow the brand to continue its significant international expansion.

“The company is a great example of a Midlands-based business which has grown to be consistently the best in its class. Phoenix’s investment is testament to this and also demonstrates the growing quality of investment opportunities we are seeing across the Midlands.”

Riviera was advised by PwC and Birmingham-based law firm Wragge Lawrence Graham & Co.

Phoenix was advised by Duff & Phelps, Travers Smith and EY.

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