SYDNEY, AUSTRALIA: FLIGHT Centre Travel Group (FLT) has entered into a binding agreement to acquire 100% of United Kingdom-based luxury leisure travel business Luxury Travel Holdings Limited (Scott Dunn) for an enterprise value of £121 million.
The acquisition is anticipated to generate modest net corporate cost and supplier synergies. The acquisition will be funded via a fully underwritten A$180 million institutional placement (Placement) and A$40 million of existing cash on FLT’s balance sheet (together with the Acquisition, the Transaction), prior to receipt of any funds raised under the share purchase plan.
Eligible shareholders will be offered the ability to participate in a non-underwritten share purchase plan to raise up to a further A$40 million (SPP, together with the Placement, the Offer).
As at 31 December 2022, adjusted to include the impact of the Acquisition, Flight Centre is expected to have pro-forma net cash of A$453 million8,9 excluding convertible bonds (which have a face value of A$800 million) and total cash and investments of A$1,113 million.
As previously disclosed, certain covenants under Flight Centre’s existing bank facilities are expected to re-commence on 30 June 2023. Flight Centre expects to comply with all covenants by that date.
Completion of the Acquisition is not subject to any conditions and is expected to take place prior to the end of February.
Scott Dunn is a multi-award winning, guest centric brand specialising in tailor-made, luxury holiday packages. Scott Dunn is a high margin leisure business in the resilient luxury travel segment with large average booking values and a strong level of repeat bookings.