Iglu.com’s chief executive Richard Downs today confirmed that a refinancing process was taking place around replacement capital and an acquisition facility.
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Iglu.com confirms refinancing process underway
Iglu.com’s chief executive Richard Downs today confirmed that a refinancing process was taking place around replacement capital and an acquisition facility.
The company’s management and team will stay in place and retain control, he stressed.
“It’s a case of replacing one minority shareholder with another,” he said.
Private equity firm LDC is the frontrunner to become involved in the ski and cruise specialist, in a deal that is thought to be worth around £60 million.
Downs told Travel Weekly that exclusive talks were taking place with LDC and a deal was likely within the next two months.
Iglu.com acquired Planet Cruise two years ago and Downs confirmed that the company was eyeing other acquisitions
“There are opportunities in the travel sector generally and we are putting the pieces in place to enable another acquisition,” said Downs.
LDC, which is part of Lloyds Banking Group, last year backed a £45 million management buyout of technology firm Anite Travel, while it announced the purchase of holiday park operator Away Resorts within the last week.
Iglu.com has been seeking a new backer since Growth Capital Partners, an existing shareholder, appointed Delotte to oversee a process last autumn. Sky News reported.
The company was founded by Downs in 1998, employs more than 100 people and makes more than £2 million in annual profit.
Other recent private equity deals in travel include Phoenix Equity Partners’ takeover of river cruise specialist Riviera Travel and Inflexion Private Equity’s acquisition of luxury operator Scott Dunn.
