Travel company Flight Centre has entered into a binding agreement to acquire UK-based premium leisure travel business Luxury Travel Holdings Limited (Scott Dunn) for A$211 million.
Scott Dunn offers tailor-made luxury holiday packages to high-value customers. It is established in the UK and the US and has a small presence in Asia.
Flight Centre MD Graham Turner said the company is “well positioned” to help Scott Dunn “unlock a new era of growth”.
“Scott Dunn provides us with the opportunity to grow our leisure presence in the large UK and US luxury markets in an attractive and growing segment, while also fast-tracking our objective of developing a global luxury collection of travel brands.”
Luxury Travel buy out will deliver growth opportunities
He added the business is an authentic brand that offers exceptional service and commands a premium price. The deal will see Scott Dunn’s existing customer base added to Flight Centre’s portfolio, adding further growth opportunities.
Scott Dunn CEO, Sonia Davies, said the business is looking to “accelerate” its growth with the Flight Centre Travel Group.
The acquisition will be funded by a fully underwritten institutional placement of $180 million and another $40 million of existing cash from Flight Centre’s balance sheet.
This article was first published on sibling website Inside Retail.
- Mid 2022 Flight Centre announced it would focus on three core elements of the business, one of which is global footprint. The Aussie-born business has expanded into 27 countries since it started out in 1982.