Growth plan as Equistone books with Travel Counsellors

PRIVATE equity firm Equistone has taken a majority stake in Travel Counsellors, the Bolton-based company which operates an international network of home-based travel agents.

Financial terms of the deal were not disclosed, but reports suggesting an investment of £100m are understood to be reasonably accurate.

Founded in 1994 by David and Maureen Speakman, Travel Counsellors has achieved 60% growth over the past five years as it has expanded internationally. It has forecast global sales of £424m for the year ending October 31 2014.

Prior to the investment Travel Counsellors was 100% owned by the Speakmans, who now live in Spain.
 
The company employs 250 staff and has over 1,300 travel experts operating in eight countries worldwide, including Ireland, Belgium, South Africa, Netherlands, UAE, Australia and Canada.
 
The investment from Equistone’s fourth fund provides the company with a platform to build on its recent growth and secure its position as one of the UK’s leading leisure businesses.

It will also enable Travel Counsellors to increase the support it offers to its global family of agents, as well as bolstering its international buying power and potential for further overseas expansion.
 
The business will continue to be led by managing director Steve Byrne, who has been with the firm for 10 years and David Speakman who will remain in his role as chairman.

As part of the deal, Equistone partners Steve O’Hare and Joyce Church will join the board of the company as non-executive directors.
 
Steve Byrne, managing director of Travel Counsellors, said: “We will use the investment and partnership with Equistone to take the company to yet another level and accelerate our growth, enabling us to capitalise on the many opportunities we have to expand the business further in both leisure and corporate sectors.

“This expansion will further bolster our global buying power and strengthen our position as the market-leading travel company for personal service, to the benefit of our agents globally.”

Steve O’Hare, partner at Equistone Partners Europe, added: “Travel Counsellors has shown impressive long term year-on-year growth under the current management team. The additional funding will be used to develop its support to its agents and market leading software, which is crucial to ensure high levels of service to its growing customer base. We look forward to working with the team and are excited about their plans to expand the business in new and existing territories.”

David Speakman said: “It has always been my intention to ensure the long term interests of the company and make Travel Counsellors even stronger for the benefit of each individual agent and their customers.

“We have partnered with Equistone as they buy into our proven business model, culture and ethos, and we look forward to an extremely promising future as a global travel company that puts its customers first.”

Rothschild and Addleshaw Goddard (partner Roger Hart)  advised Travel Counsellors on the transaction.
 
Equistone was advised by Deloitte, while Pinsent Masons provided legal advice.
 
The acquisition finance and mid-markets teams at Lloyds Bank Commercial Banking provided a package of senior debt and working capital facilities.
 
PwC provided financial due diligence, and commercial due diligence was provided by L.E.K. Consulting.