Under the deal, which is subject to shareholder approval at an extraordinary general meeting, PGL would become Holidaybreak’s Education Division with current PGL chief executive Martin Davies as managing director.
In a statement released today, Holidaybreak said it expected the acquisition to be earnings enhancing for the year ending 30 September 2008, the first full financial year after the acquisition.
Holidaybreak today posted a pre-tax loss of £7.9 million for the six months to March 31, down from £6.3 million the previous year. It provided 544,000 holidays over the period compared to 545,000 last year.
Holidaybreak chief executive Carl Michel said: “This year we again expect to deliver margins well above industry norms and demonstrate strong cash generation. We continue to have a healthy pipeline of acquisitions and will grow our brands within Holidaybreak.
“Current trading in all our divisions is broadly in line with expectations and the board continues to expect to achieve a satisfactory trading outcome for the full year. We are excited by the potential of PGL and believe it is an excellent fit with our strategy.”