Last checked at 24 Jun 2008 07:00
24 June: For immediate release
HOLIDAYBREAK PLC
Acquisition of European Study Tours
Holidaybreak, the European specialist holiday and educational activity group, announces that it has acquired Hertford Travel Group Limited, the holding company of educational tour operator European Study Tours ("EST") from David Campbell and William Sadler, principals of Banks Sadler, the meetings, corporate travel and events company, and EST's Managing Director Brendan Jones.
The consideration for EST totals £4.05m, following a pound for pound adjustment for the average cash balances within the business. In the year to 31 August 2007, EST generated normalised turnover of £5.7 million and normalised EBITDA of approximately £0.5 million. The acquisition is expected to be marginally earnings enhancing (pre-amortisation of intangibles)* for Holidaybreak in the financial year ended 30 September 2009.
EST will sit within Holidaybreak's Education Division, which was created from the acquisitions of PGL and NST in 2007. EST (www.euro-study-tours.co.uk) was established in 1983. It specialises in bespoke travel and subject specific conferences for 16+, higher and further education students. Conference venues are located around the world and cover a range of subjects across the curriculum including Art and Design, Business and Economics, History and Politics, Language and Culture, Hospitality and Catering, Leisure and Tourism, Performing Arts, ICT and Geography. The annual 'Your Future in Europe' conference in particular has run since 1989, brings over 2,000 students a year to Paris and has been described in the Times Educational Supplement as "the annual 'must go' occasion in the school diaries of sixth forms".
The new acquisition will be combined with NST's StudyLink operation, the UK's leading provider of affordable group travel for university and college student groups. Brendan Jones, currently Managing Director of EST, will lead the enlarged Higher Education team and represent the Further Education and Higher Education segment in the Education Division management team.
Carl Michel, Chief Executive of Holidaybreak, said:
"This is another excellent acquisition for Holidaybreak. EST strengthens our position in educational travel and I am pleased to welcome Brendan and his team into our group. This is a very well run business, with products that will allow us to offer a wider range of tours and lead the Higher and Further Education segment. In Brendan Jones, we have acquired an excellent manager with a good track record of managing profitable growth in our sector. Education is a key market sector for the Group and our enhanced offering will increase the division's growth prospects."
\* This statement should not be taken to mean that the earnings per share of Holidaybreak plc will necessarily match or exceed the historic reported earnings per share of Holidaybreak plc and no forecast is intended or implied.
Enquiries:
Carl Michel / Bob Baddeley Holidaybreak +44 (0) 1606 787100
Craig Breheny / Ash Spiegelberg Brunswick +44 (0)20 7404 5959
Note to Editors
Holidaybreak (HBR.L) is listed on the London Stock Exchange. Holidaybreak has four operating divisions: Education, Hotel Breaks, Adventure Travel and Camping. Each is a market leader in its respective specialist sector of the European holiday and educational activity industry, has multi-channel distribution and is recognised for providing high standards of product and service quality. For more information, please go to www.holidaybreak.co.uk.
Holidaybreak were advised by BDO Stoy Haward (accounting) and HBJ Gateley Wareing LLP (legal). The vendors were advised by INFINICOR, with legal advice provided by Royds LLP.