TVZ.L Regulatory News (TVZ)

12 Jun 2006 07:01

Travelzest plc12 June 2006 Date: 12 June 2006 On behalf of: Travelzest plc ("Travelzest" or the "Company") Embargoed until: 0700hrs Travelzest plcAcquisition of The Montpelier Collection Limited, owner of Fair's Fare Travelzest plc, the British travel group offering specialist travel programmes,announces that it has entered into an agreement to purchase the entire issuedshare capital of The Montpelier Collection Ltd, the holding company of Fair'sFare Limited ("Fair's Fare"). Established in 1995, Fair's Fare is the UK's leading firm of airfare analysts,offering a unique travel planning service to both private and business clients.The company seeks out the very best financial options, on all major airlines,but primarily for long-haul travellers in the first and business class cabins ofthe world's leading airlines. Audited results of Fair's Fare Limited for the year ending 31 December 2005 showa total transaction value of £16,136,439 which represents turnover of£2,019,889. After adjustment for overhead costs relating to the previous ownerand other non recurring costs, which cease upon acquisition by Travelzest, theoperating profit is £524,794. Travelzest will acquire Fair's Fare, a privately-owned business, for aconsideration of £3.95 million to be satisfied by £1,250,000 cash, £2,000,000loan notes and 542,636 shares on completion, subject to the net asset value ofFair's Fare at completion. The initial purchase consideration is based on a multiple of five times theforecast EBIT for 2006 of £800,000, with a clawback mechanism should the resultsfall short of this target. In addition, there is an opportunity for the vendorto earn a further £3.5 million if the business achieves certain profit targetsin 2007, which will be satisfied solely by shares in Travelzest. Travelzest also announces a placing of 2,085,714 new shares with investors at aprice of 126 pence per share. The number of shares in issue following theplacing and the issue of the vendor consideration shares will be 11,464,435.These shares are expected to be admitted to trading on 15 June 2006. Commenting on the acquisition, Chris Mottershead, Travelzest's Chief Executive,said: "Travelzest is making excellent progress in building a portfolio of highquality, niche travel companies. Fair's Fare is a growing business offering aleading service to frequent first and business class travellers. As part of theTravelzest Group it will benefit from opportunities provided by other Groupcompanies, together with exposure to new external customers. This acquisitionfollows closely on the heels of Peng Travel and we continue to assess potentialtargets." Enquiries: Christopher Mottershead 020 7747 7231Travelzest plc Emma Kane / Duncan McCormick / Samantha RobbinsRedleaf Communications Limited 020 7955 1410 Background information on Travelzest Travelzest is a travel group with high quality brands offering specialistholiday programmes and services. Chris Mottershead, 47, the Group Chief Executive who joined Travelzest in April2005, has extensive experience in the travel industry and in working for bothlarge and small organisations. He was managing director of TUI UK between 2001and 2004 with responsibility for Thomson Holidays, Lunn Poly, Travelhouse andother travel businesses based in the UK. During that time, he steered thecompany through one of the most difficult periods for travel and still achievedrecord profits. Prior to this, he was President and CEO, North American LeisureGroup, Airtours plc, which he joined in 1993 and where his roles includedmanaging director and finance director. He joined Airtours from Aspro Travel &Inter European Airways where he was Group Finance Director. The Group currently comprises: VFB Holidays - a long established, award winning tour operator, which providedholidays for approximately 24,000 passengers in its last financial year. VFB iscurrently contracted with the owners of approximately 350 holiday cottagesthroughout France for the summer season, and has booking arrangements with over150 hotels, most of which are privately owned and are located in rural orsemi-rural locations. VFB specialises in cottage holidays in France, but alsohas a number of other holiday programmes including: France a la Carte (hotelaccommodation), Corsica, Short Breaks, Escorted Tours and River Cruises. Holiday Express - one of the UK's leading on-line travel agents, Holiday Expressis a travel agent specialising in on-line travel fulfilment services and onlinetravel sales. Holiday Express' retail business (acting as travel agent),providing package holidays, charter flights and ski booking services, accountsfor the vast majority of its revenue and the remainder of its revenue isgenerated through acting as a tour operator. Holiday Express owns a number oftravel website domain names, including: - www.holiday.co.uk - www.flight.co.uk - www.discountholidays.com Best of Morocco is a tour operator specialising in high quality, tailor-madeholidays to Morocco for individuals or small groups. It provides apersonalised service and its highly experienced and knowledgeable staff helpeach customer select the hotels / resorts from their large range which areappropriate for the customer's desired style of holiday. Best of Morocco is thepremier agent for the Marathon des Sables, a foot race that takes place inMorocco in April each year, covering some 230km. Best of Morocco provides thelargest contingent of runners for the race each year. Peng Travel was formed in 1971 to arrange naturist holidays for the UK market.Since then, it has grown to become Britain's biggest naturist tour operator. Ithas unrivalled experience of naturist areas worldwide and has selected only thebest. The range of naturist holidays offered is unmatched by any other Britishtour operator. This information is provided by RNS The company news service from the London Stock Exchange