Flight Centre opens wallet to crack posh travel market
Flight Centre has bought UK-based luxury travel company Scott Dunn for $211 million giving the Brisbane-based retailer an entry point into the US and UK high-end markets.
The deal was funded by a $180 million institutional placement and $40 million in existing cash.
Another $40 million would be raised via a share purchase plan for existing shareholders.
Flight Centre said the deal would deliver a total transaction value of $9.9 billion for the first half of 2023. The TTV represents all sales conducted through the business. The boost to group revenue was estimated at $1 billion for the half and underlying EBITDA would increase by $95 million.
The guidance for the full year EBITDA was $250 million to $280 million for 2023.
Scott Dunn specialised in tailor-made luxury travel and Flight Centre said it was acquiring a high-margin business in a resilient sector of the market.
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“The acquisition will allow FLT to diversify its northern hemisphere footprint aligned with the company’s strategic objectives of expanding its core markets and developing a global luxury collection of travel brands,” the company said.
Managing director and co-founder Graham “Skroo” Turner said the business had a strong and experienced management headed by chief executive Sonia Davies, who would continue to run the business.
“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,” Turner said.
“High net-worth, time-poor customers highly value the services of Scott Dunn as shown by their customers’ loyalty.”
