Private equity firm jumps on board Amber Travel

AS the baby boomers head towards retirement, many of them will get an overpowering urge to hop on a train and see the world.

This trend is set to boost turnover and profits at a Yorkshire company. Private equity firm ECI Partners yesterday revealed that it had taken a majority stake in the York-based rail travel company, Amber Travel.

The transaction values the business at more than £50m, and it marks a successful exit for Primary Capital, who invested in Amber in 2005.

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With a turnover of £67m, Amber Travel is a specialist, rail tour business, offering escorted group holidays to destinations around the world.

It is expected to achieve turnover growth of more than 20 per cent in 2013.

Established in 1980, the company offers 300 itineraries across 40 countries.

Last year, 50,000 customers went on an Amber rail holiday.

Amber, which has around 120 staff, caters for the growing number of relatively affluent, mostly retired travellers, who prioritise travel spending.

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The company’s brands include Great Rail Journeys, which offers predominantly first class rail travel, with accommodation in four and five star hotels.

Chris Watt, head of ECI’s consumer team, will sit on the Amber board. He served as non-executive director for previous ECI travel portfolio companies, including Hoseseasons and Kirker.

Amber Travel executive chairman Nick Cust said: “We’re delighted to welcome ECI Partners aboard Amber.

“As a management team we are very excited about partnering with ECI, an organisation with a long and positive track record of past and current ownership of travel businesses. Since becoming chairman in January 2011, I have been very impressed by the quality, value and appeal of our holidays.”

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Lloyds Bank Commercial Banking’s acquisition finance team provided a package of senior debt to support the transaction.

Christian Mayo, KPMG’s Leeds head of corporate finance, who advised Amber Travel, said yesterday: “Despite some significant headwinds in the UK holiday market in recent years, certain niche areas of the market have weathered the storm better than others.

“One of those is escorted group rail holidays to locations across the world, which is increasingly popular with the 55-plus age group.

“Today’s investment recognises Amber’s further growth prospects, and shows private equity investors are willing to put their cash to work in high growth travel specialists.”

Harry Stoakes, at BDO Corporate Finance, who advised ECI on the deal, said yesterday: “We are seeing a very buoyant market for mergers and acquisitions in the travel sector.”

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