New journey for Amber Travel
PRIVATE equity firm ECI Partners has taken a majority stake in Yorkshire-based rail travel company Amber Travel.
The deal values Amber Travel at more than £50m and marks an exit for Primary Capital, which invested in the York-based company in 2005.
With a turnover of £67m, Amber Travel is the UK’s leading specialist rail tour business, offering escorted group holidays to destinations around the world.
Established in 1980, the company has grown to offer 300 different itineraries across 40 countries, ranging from Europe to Africa, North America, Asia, Russia and Australia. Last year, 50,000 customers went on an Amber rail holiday.
The company operates through three brands: Great Rail Journeys; Treyn; and RailSelect.com.
Chris Watt, head of ECI’s consumer team, will sit on Amber’s board.
Nick Cust, Amber Travel’s chairman, said: “We’re delighted to welcome ECI Partners aboard Amber. As a management team we are very excited about partnering with ECI, an organisation with a long and positive track record of past and current ownership of travel businesses.
“Since becoming Chairman in January 2011, I have been very impressed by the quality, value and appeal of our holidays.”
Chris Watt, partner at ECI Partners, added: “This is a business with a highly differentiated proposition that appeals to the culturally interested traveller. Amber caters for an affluent, growing demographic, that wants to see the world.
“We are very excited about the prospects for continuing growth at the business, and we look forward to working with Nick and his team.”
Lloyds Bank Commercial Banking’s acquisition finance team provided a package of senior debt to support the transaction.
Rob Lawrence, director of acquisition finance at Lloyds Bank Commercial Banking, said: “Amber Travel’s differentiated and resilient business model, loyal customer base and experienced management team mean that it is well placed to continue growing in its niche travel markets.”
KPMG in Leeds advised on the deal.
Christian Mayo, KPMG’s Leeds head of corporate finance, said: “Despite some significant headwinds in the UK holiday market in recent years, certain niche areas of the market have weathered the storm better than others.
“One of those is escorted group rail holidays to locations across the world – increasingly popular with the 55-plus age group – and projected to grow in popularity on the back of the demographic outlook and customer demands for a differentiated holiday experience.
“Amber Travel’s product offering, focus on customer service, value for money and new product development has underpinned its success to date and made it an especially enticing investment opportunity.”
