Lastminute.com’s decision to buy Holiday Autos for £39.7m was greeted with some surprise by the industry.
The companies are a good fit and it seems like a reasonable deal for both sides. But in the current climate – the worst the travel industry can remember – it’s a wonder that a deal of any kind has been done.
It says a lot for Holiday Autos and its founder Clive Jacobs that the city was prepared to back a dot-com company buying a car rental broker as war rages in the Middle East and holiday bookings fall off a cliff.
Indeed, some have said to me that if Clive could sell the company now, why not wait until the dust has settled, some normality has returned to the industry and he could perhaps get even more for Holiday Autos?
I disagree for several reasons. We live in such an uncertain world that few can dare to predict the future of any travel firm. Holiday Autos is a well-run and profitable company but there are many of those that could struggle in the months and years ahead without the backing of a big parent. Lastminute paid a fair price and there are no guarantees that anyone else will pay a bigger sum in the future.
But most importantly, Clive has struck a deal which will enable Holiday Autos to develop in the future and give him a new challenge. As executive director and vice-chairman of Lastminute, Clive will have plenty to do with one of the most exciting companies in the travel industry.
Sure, he could afford to sail off to the Caribbean and never be heard of again. But he’s in his early forties and he’s not ready to hang up his boots yet.
I think it’ll turn out to be a good deal for both sides. And the trade certainly hasn’t heard the last of Clive Jacobs.
