Last checked at 13 May 2021 10:00
Moneysupermarket.com Group PLC to combine TravelSupermarket with Icelolly.com to create a standalone holiday comparison business
Moneysupermarket.com Group PLC (MSMG) has agreed to combine its TravelSupermarket business (TSM) with Icelolly Marketing Limited (Icelolly.com), enabling stronger and broader travel comparison services across both brands.
Icelolly.com is an online package holidays travel intermediary specialising in price comparison and deals, and will complement TSM's comparison services for holidays, flights, hotels, car hire and travel ancillaries. Both brands will be retained, with each benefiting from revenue diversification, shared commercial expertise and greater audience reach.
Icelolly.com brings an experienced senior team from the travel industry, including CEO Richard Singer, who will lead a common management team across both brands.
The transaction is structured as a cash-free exchange with both TSM and Icelolly entering the combined business on a cash and debt-free basis. MSMG will own 62% of the combined entity and will have board control, with the remaining equity held by Palatine Private Equity LLP (the current owners of Icelolly.com) and the management team. No new capital is being invested into the business, although MSMG has agreed a loan note of £4m to fund working capital requirements. In 2019 the combined revenue for the two brands was around £30m, with 2020 performance significantly impacted by the Covid-19 pandemic.
Completion of the transaction is conditional on the receipt of clearance from the Competition and Markets Authority.
Peter Duffy, CEO of Moneysupermarket Group, said:
"The combination of TravelSupermarket and Icelolly.com will benefit customers of both brands with a richer and more diversified offer as the travel and holiday markets recover. As well as unlocking commercial benefits, the creation of a standalone entity under a dedicated management team will give us greater flexibility going forwards to maximise shareholder returns."
For further information, contact:
Scilla Grimble, Chief Financial Officer scilla.grimble@moneysupermarket.com / 0203 826 4667
Ian Gibson, Strategy & IR Director ian.gibson@moneysupermarket.com / 07974 197742
William Clutterbuck, Maitland/AMO wclutterbuck@maitland.co.uk / 07785 292617
Notes
The transaction is subject to the completion of customary conditions.
Founded in 2005 and based in Leeds, Icelolly.com is a package holidays travel intermediary specialising in price comparison and deals. CEO Richard Singer worked previously at TravelZoo, a Nasdaq listed travel and media business, where he was President of European and Australian operations.
TravelSupermarket was founded in 2004, and is based in London and Ewloe, Wales. It helps UK consumers find and save money on holidays, flights, hotels, car hire and travel extras such as travel insurance and airport parking.
We expect the combined business to be consolidated into MSMG, with the Palatine Private Equity and management shares reflected as a non-controlling interest.
Cautionary note regarding forward looking statements
This statement may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward-looking statements to reflect events or developments occurring after the date such statements are published. The information in this release is based on management information.