Stockport based On the Beach Group plc has today announced a multi-million pound deal to purchase online UK travel agent Sunshine.co.uk Limited.
On the Beach Travel Ltd, the online beach holiday retailer subsidiary of On the Beach Group plc, agreed to acquire the entire share capital of Sunshine for £12m.
In the 13 months to 30 September 2016, Sunshine reported an EBITDA of £1.6m with gross assets of £18.6m.
On the Beach said the deal will add around 200k customers to its 1.2m customer pool and will enhance earnings in the current financial year to 30 September 2017.
Simon Cooper, On the Beach Group CEO, commented:
“We are delighted to have acquired a brand as well-established with beach holidaymakers as sunshine.co.uk.
“This earnings-enhancing transaction reflects the Board’s ambition to consolidate On the Beach’s leading position in the online beach holiday space while supporting our drive to exclusivity and underpinning our ability to further leverage our scale.”
On the Beach Group plc will fund the transaction with its cash resources and an extension to its existing Lloyds Bank working capital revolving credit facility.
The total amount will be settled in two parts, with 75% paid upon completion and 25% in December.
Founded in 2004, On the Beach is the UK’s leading beach holiday specialist. With more than 60 million website visitors this year, over one million customers found, booked and enjoyed their holiday through On the Beach.
Last April On the Beach were named the UK and Ireland’s top online travel agency.