Published: 08:47, 16 May 2018
| Updated: 08:48, 16 May 2018
Holiday Extras has been valued at close to £100 million after the completion of a management buyout.
The firm, which has offices in Newingreen, near Hythe, and Smeeth, specialises in providing travel extras such as airport parking and hotels. It currently employs around 1,000 people and serves a customer base of seven million.
As part of the takeover deal, 55% of the company's equity has been put into an employee benefit trust.
Natwest, a long-standing financial partner of Holiday Extras, funded 50% of the £30 million transaction, with the remainder covered by medium term shareholder borrowing.
The deal lays the foundation to support the growth in shareholder value planned for the next five years.
It also confirms that 12.7% of the company’s value will be ring-fenced to distribute to employees in the event of a future sale.
Expanding organically and through acquisitions which include Chauntry Corporation Ltd, and the well-known brand Purple Parking, this growth will include new locations across Europe and "an evolved product" offering - both of which will be unveiled later this year.
Matthew Pack, group CEO of Holiday Extras, said: “Today marks an exciting milestone in Holiday Extras’ development as we set the stage for the future by strengthening the ownership and value of our business, and putting in place an exciting development plan for the next five years.
“Holiday Extras’ experienced management team and dedicated staff are crucial to our future success, and I’m delighted that there is now a robust mechanism in place to share the value of the company with them.”
Holiday Extras’ management team is led by group CEO, Matthew Pack, who is supported by Simon Hagger, deputy CEO, David Norris, COO, and Andrew Parker CFO.
The company’s group board consists of Pack, Parker, along with Mark Smith (non-executive chairman) and David Kelly and Jeremy Pack (non-executive directors).
Carol and Gerry Pack, the original founders of the business some 35 year ago, said “Holiday Extras is in good hands. The team are brilliant, lively, energetic and progressive. We love the plan and the vision.”
More by this authorChris Britcher