SUNSAIL is targeting a number of niche sailing operators for acquisition as it looks to expand the business under new owners First Choice.
The £35m deal, with a further £5m payable depending on profits, was completed late last week after lengthy negotiations.
Sunsail, with a fleet of 900 yachts and the market leader in sailing holidays, is now hoping to open talks with other specialists in the market. It will also open two new clubs in the Caribbean next summer, while business from Canada is expected to grow through First Choice’s Signature Vacations operation.
Sunsail founder and managing director Chris Gordon said management had been given a free reign to continue running the business. “We are looking at a number of specialist companies who we believe wish to become part of the Sunsail group,” he said.
“Any decisions will have to be ratified by the First Choice board, but we will continue running the business in the way we were before the deal.”
Gordon said most of the expansion will come from the international market which currently accounts for 40% of its business.
“We are looking particularly at the Caribbean,” he said. “Being part of a company like First Choice will give us financial clout which we did not have previously.”
Founded by Gordon in 1979, Sunsail will carry around 87,000 passengers this year and in the year ending October 31 1998 reported a £2.5m profit on a turnover of £8.8m. Gordon, who owned 20% of Sunsail with 70% owned by capital investors Mercury Private Equity, said profits will be “significantly” up on last year.
First Choice chief executive Peter Long said the acquisition forms part of a long-term plan to increase its specialist and overseas business.