Private equity firm Phoenix Equity Partners has taken a majority stake in escorted tours and river cruise operator Riviera Travel.
The terms of the transaction have not been disclosed, but a statement said founder Michael Wright will remain with the business as a non-executive director and as a “significant shareholder”.
David Clemson, who joined the business in 2008, will continue on as managing director.
Wright told Travel Weekly that the bid from Phoenix wasn’t the highest he had received but the firm’s attitude was fitting to that of Rivieras.
Wright, who set up the Staffordshire-based operator 30 years ago, added: “I am delighted to welcome Phoenix as a new investor in Riviera. Phoenix is very experienced at partnering with founder-owned businesses.
“Together, we shall continue to focus on providing exceptional service for our loyal customers, developing our successful portfolio of tours and river cruises, and creating opportunities in the business for staff at all levels.”
Clemson added: “I am very excited that Phoenix is investing in the business. They have strong experience of the leisure sector and, most importantly, it will be business as usual as we move into the busy booking season in January.”
David Burns, managing partner at Phoenix, said: “Riviera is an exceptional company, with a wonderful culture and very loyal customers. We are delighted to be partnering with Michael and David, and to be investing to grow the business.”
Reports around the deal previously speculated it was worth around £120 million.
Several private equity companies have shown an interest in the river cruise and escorted touring operator. The Sunday Times reported earlier this month that Phoenix began exclusive talks about a potential sale opportunity, despite four different firms – Equistone, Bridgepoint, LDC and Phoenix – being interested investing or buying the business.
Riviera, who brought in advisors PriceWaterhouseCooper earlier this year ahead of a deal, made a pre-tax profit of £9.9 million and revenues of £106.2 million last year.
Riviera first started selling through the trade in 2012, having spent years selling direct through newspaper advertising.