Private equity firm Primary Capital has announced a “significant investment” in Diversity Travel, the international travel management company serving the humanitarian, academic and not-for-profit sectors.
The value of the deal and size of the investment had not been disclosed.
Diversity was founded in 2008 by Harish Sodha, Chris Airey, Matt Truin and Sarah Burrows, and now supports more than 900 clients.
Primary has taken a majority shareholding in Diversity, alongside Harish Sodha, Christopher Airey and other members of the senior management team.
Peter Liney also joins the company as non-executive chair to support management and Primary. He held strategic roles at British Airways before becoming chief executive of STA Travel and, latterly, Great Rail Journeys. He is on the board of several other travel operators and a trustee of English Heritage.
In a statement, Primary said its investment will support Diversity’s management team “as they continue the strong growth momentum the business has enjoyed either side of the Covid pandemic and seek to expand its presence in the US and European markets”.
The statement said Primary has provided “significant equity finance alongside management”, with alternative finance provider ThinCats providing debt facilities to support the buyout.
Back in July, Sky News reported that Diversity Travel was on the verge of being bought by Primary in a deal worth about £40 million.
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Chris Airey, Diversity chief executive, said: “We are excited to announce this investment and to partner with Primary as we embark on the next chapter of our development.
“We look forward to continuing to support customers and building Diversity into a truly global operator across the markets and geographies we serve.”
Alec Parkinson, partner at Primary, commented: “Diversity provides global travel management services to some of the world’s leading humanitarian and academic organisations with a clear customer-focused service proposition and a strong track record of growth.
“We are thrilled to be working with Chris and the Diversity team to support the company’s next stage of growth through investment in technology, international expansion and service offering development.”
Sodha, founder of Diversity, added: “Primary shares our vision for the business and, with their support, I look forward to seeing Diversity continue to thrive and offer a world-class service to the programmes and clients with whom we work.”
Parkinson, Pete Lyons and David Richard led the investment for Primary, while Michelle Heptinstall, Stephen Gater and Anna O’Neill led the debt funding team at ThinCats.
Heptinstall, business development director at ThinCats, commented: “The deal is a flagship transaction for ThinCats’ North West team and marks the start of a relationship with a highly regarded mid-market sponsor and local business. Our experience in funding high growth, sponsor-backed deals, was critical to us delivering a competitive debt structure within the necessary timescales.”
ThinCats was advised by Pinsent Masons. Diversity was advised by Houlihan Lokey, Addleshaw Goddard and Travel Trade Consultancy. Primary was advised by Clearwater International, Cooley and Evelyn Partners. Alvarez & Marsal, Kroll, Travology, Highwire and Vista provided due diligence services.