The private equity owners of Neilson Active Holidays has sold the business to new investors LDC.
The much-anticipated deal for the Brighton-based beach club and ski operator was completed today.
The existing management team, led by chief executive David Taylor and chairman Richard Bowden-Doyle will continue to lead the business.
Cavendish Corporate Finance, which advised on the deal, made the announcement.
Taylor said: “With the support of Risk Capital Partners we have built a wonderful business over the last five years.
“We have added new Beach clubs, new destinations, more activities, transformed winter with the launch of the mountain collection, improved hospitality, and seen record customer scores year after year.
“In recognition of this we have won travel awards and numerous accolades for the outstanding service we deliver to our customers every day. And last, but not least, our profitability has soared.
“I would like to thank the Risk Capital team for everything they have helped us achieve in the last few years.
“We have plans to continue this exciting journey by adding more regional UK departure airports and accelerating the growth of summer and winter by adding new resorts and countries over the coming years.”
LDC has bought into this vision and growth strategy completely, and with their proven pedigree in the travel sector I’m delighted to welcome them on-board as our new partners.”
Jonathan Buxton, partner and head of consumer at Cavendish, said: “We are delighted to have advised Neilson shareholders and to have found in LDC the right investor to take the firm to its next stage of growth.
“There is a growing demand for activity and wellness holidays in the UK and this transaction will enable Neilson to meet the needs of its growing customer base, drive the expansion of Neilson’s award winning beach clubs and increase its presence across key holiday destinations in Europe and around the world.”
Neilson operates beachclubs, ski hotels and chalets and 65 yachts, exclusively for its guests who number almost 80,000 every year.
In recent years Neilson has successfully capitalised on the increasing demand for activity and wellness holidays at the premium end of the market.
This latest investment will enable the business to accelerate growth through the opening of new hotels to extend the range of countries in which the business operates as well as providing further backing for strategic acquisitions.
Neilson has annual revenues of £80 million and is said to be “a highly profitable business that is primed for further growth”.
As part of the deal, LDC’s Richard Whitwell and David Bains will join the board.
LDC is one of the UK’s leading mid-market private equity investors which has a long history of backing management teams and helping them grow their businesses.
It has current investments including Iglu.com, Away Resorts, Blue Bay Travel and Forest Holidays.
The transaction provides an exit for Risk Capital Partners which has owned the business since 2013 when Thomas Cook sold it for £9.5 million.