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Lastminute acquisition pleases City
Lastminute.com has announced the £12m purchase of direct sell tour operator and airline consolidator The Destinations Holdings Group (DGL).
News of the deal comes hot on the heels of the company’s announcement that it is to take a 20% stake in Lufthansa City Center’s online venture LCC24. It also follows the recent purchase of flights provider TravelSelect.
DGL provides flights, own label package holidays and car hire – with online bookings accounting for 75% of total sales through its Travel4less internet division. Rather than having all its products on a single site, Travel4less has developed a series of dedicated websites including Flights4less, Carhire4less, Holidays4less and Citybreaks4less.
DGL currently employs 119 full time staff based in London. The company’s sales have increased from £8.1 million in the year to 30 April 1995 to £28.3 million in the year to 30 April 2001. Unaudited profits before tax for the year to April 30 show a profit before tax of £1.4 million.
The purchase will be funded by a vendor placing to raise £8.0 million and the issue of 4,835,298 new shares in lastminute.com.
Raj Kumar, the joint majority shareholder and group managing director of DGL will join the Executive Committee of lastminute.com with effect from completion. Mr Kumar said: “To become part of such a dynamic and forward thinking Group is tremendously exciting and offers us the economies of scale and global distribution we need to grow the business dramatically and strengthen both brands in an increasingly competitive marketplace. The move towards dynamic packaging will ensure that we become the integrated online tour operator of choice for the discerning client.”
Lastminute.com chief executive Brent Hoberman added: “Raj Kumar and his team have built a great business operating principally in the online travel sector. I am delighted to welcome them to the lastminute.com group and to acquire such an earnings enhancing company which furthers the scale of the UK business.”
Shares in Lastminute.com were continuing to edge forward on Friday morning following news of the deal. By 10am they were trading at 95pence, up over 4% on yesterday’s closing price of 91.5pence.
See our previous stories:
10-Jun-2002: Lastminute takes 20% stake in German website
10 May 2002: Lastminute reaches profitability in the UK and France
08 Apr 2002: Lastminute buys Travelselect for £9m
19 Mar 2002: The TravelMole Interview: Helen Baker, Lastminute.com
25 Feb 2002: Rapid secures lastminute.com technology deal
30 Jan 2002: lastminute.com announces Japan joint venture
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