Shearings Group has secured additional private equity backing to help fund further expansion following its recent management buyout.
The specialist operator, which offers escorted tours and hotels, has received an undisclosed amount from Moorfield Real Estate Funds, a UK real estate and private equity fund manager, for a “significant minority shareholding” in Shearings.
The management team retain the majority shareholding after the buyout led by chief executive Denis Wormwell in June.
The group has also improved its existing banking facilities with Lloyds Bank.
Shearings said the Moorfield transaction finalised its recapitalisation and ensured the group had “optimal capital structure” for its continued growth. The group first partnered with Moorfield in 2006 when it completed an acquisition and leaseback of the group’s hotel estate.
Wormwell said: “Moorfield has been an important, long-term supporter of Shearings. Welcoming them on board as an investment partner enables us to align our interests around the continued expansion of the group and ensure we have the best capital structure to deliver our growth strategy.”
Moorfield Group chief investment officer Charles Ferguson Davie added: “We see further potential in Shearings’ model and a clear opportunity to increase market share as consumer confidence recovers in the UK. “
The Wigan-based group announced growth in passenger numbers of 2.6% to 1.05 million in 2013, which it said reflected strong demand for its products from its over 50s customer base, generating sales of £195 million and profits of £5.8 million.