Zip World announces major investment as company valued at £100m
Adventure park operator and Zip World has announced a majority investment from direct equity investor Dolphin Capital.
Dolphin Capital has invested alongside Zip World founder, Sean Taylor, in a deal that values the company at more than £100m.
The transaction marks an exit for LDC, the private equity investor which is part of Lloyds Banking Group, and follows a successful six-year partnership in which Zip World increased turnover by 95% and grew headcount by 200%.
The transaction was led by Dewi Hughes, LDC’s head of the South West and Wales.
LDC originally backed founder Sean Taylor and the management team in December 2018 with a minority investment to support Zip World’s growth strategy. Since then, Zip World has more than doubled the number of sites from its original three in North Wales, launched new adventure attractions and diversified into accommodation, including a hotel and luxury forest lodges.
Today, it has eight sites across Wales and England, with adventures including the world’s fastest zip line, Velocity, and a variety of other zips, climbs, drops, and coasters across its locations. The business’ growth has also been supported by a significant investment in its people, systems, merchandising and food and beverage.
Andrew Hudson, CEO of Zip World, said: “The leisure and hospitality sector has had its challenges over the past year, so I’m incredibly proud of everything we’ve achieved and that we’re able to continue growing and building on this. As LDC concludes their successful investment journey with us, we want to thank them for their support over the years which has allowed us to stay resilient and achieve so many of our goals despite the significant disruption caused by the Covid-19 pandemic.”
The transaction was led by Hughes alongside Rob Schofield and Vera Kuehne at LDC.
Hughes said: “Zip World is a progressive, dynamic and ambitious business in the UK adventure space. It has achieved strong growth during our partnership thanks to the vision, tenacity and strength of its first-class management team, who have navigated opportunities and market challenges with relish. We’ve had the privilege of supporting this important Welsh business on its journey from our Welsh office and wish the team and Dolphin Capital the very best for what will no doubt continue to be an exciting story.”
The investment from Dolphin Capital is the latest in a series of positive developments for Zip World, as the company prepares to welcome visitors to its newest site, Zip World London, at the Queen Elizabeth Olympic Park in February. The company is also opening a new site in Elterwater, Cumbria later in 2025.
In its existing estate, Zip World is awaiting the planning decision on a new attraction at Penrhyn Quarry, set to be the largest of its type in the world, enhancing the company’s adrenaline-filled attractions in North Wales.
Additional investment continues at Zip World Llechwedd with new restaurant facilities currently under construction and, in Manchester, the company’s plans for further adventures at the Heaton Park site are in for approval. Alongside these developments, Zip World is actively seeking new sites and partners across the UK to bring its unique adventures to even more locations.
Richard Cook, Partner of Dolphin Capital, said: “We are delighted to support Zip World in their continued growth, and our investment reflects our confidence in the team’s operational ability, their expansion plans and the positive impact they make to the adventure tourism sector in the UK. We look forward to investing in the existing sites and opening more Zip Worlds in the coming years.”
LDC and Zip World were advised by KPMG (corporate finance), Blake Morgan (legal), Grant Thornton (tax) and Sedulo (tax), with ongoing support from HSBC Leveraged Finance Manchester.
Dolphin Capital was advised by Katz Advisers (corporate finance), Fladgate (legal) and BDO (financial & tax due diligence) and KPMG (tax).
