LDC backs TD Travel MBO
A CORPORATE travel company has been bought by its management in a deal backed by private equity firm LDC in Yorkshire and advised out of the region.
TD Travel, which was established more than 25 years ago, specialises in providing personalised business travel consultancy and booking services to more than 500 companies.
The Wilmslow, Cheshire, headquartered business has offices in Hull and Leeds, employs 60 consultants and posted turnover for the year ended March 2011 of £40m.
The deal is expected to provide an exit for TD Travel’s founders Simon King and John Owen, who established the company in 1984.
The MBO team is led by Ian White, who joined the business in 2005 as commercial director having previously been chief executive of travel management company Corporate Travel International.
Tony Norwood, who led the investment for LDC in Leeds and also joins the board of TD Travel, said: “This is about backing both a proven business model and a dynamic, ambitious management team.
“TD Travel has developed a genuinely differentiated proposition as a consultant-led travel management company securing the loyalty of an impressive customer base which relies heavily on its expertise and cost-saving ability.”
The Leeds offices of BDO, Walker Morris, and Rollits advised on the deal.
Tim Clarke, M&A partner at BDO in Leeds, said: “The management team at TD Travel has significant experience and industry know-how. The MBO will no doubt prove to be a huge success, with the new team taking the business from strength to strength.”
Other management team members involved in the MBO are Chris Needham, former founder and chief executive of hotel booking provider Hotelscene and operations director Chris Mollan who has been with the business for five years.
As part of the deal, Dick Porter, a co-founder of STA Travel and previously chairman of private-equity backed business travel company Griffin Travel, will join the business as non-executive chairman.
Mr White said: “Securing the backing of LDC is a strong endorsement of the business we’ve built to date, particularly our customer service ethos.”
Advisors to LDC and management:
BDO:
– Corporate finance advisers (Tim Clarke, partner, Leeds office)
– Financial due diligence (Matt Copley, partner, Leeds office)
– Management tax advice (Terry Jones, partner, Leeds office)
– Regulatory compliance advice (Paul Davies, partner, Leeds office)
Advisors to LDC:
Walker Morris
– Legal advisors (Ian Gilbert, partner, Leeds office)
AMR International
– Commercial due diligence (Jim Easton, chief executive, London office)
Advisors to management:
Rollits
– Legal advisors (Nasim Sharf, partner, Hull office)
