Creating Shareholder Value

loveholidays

Transaction: Realised Investment

Sector: Online Travel Agency

Investment Realised: May 2018

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loveholidays was a headline grabbing sale during 2018; from complete start-up investment to the 8th largest travel company in the UK, the investment and exit was managed by Meridian and Shoosmiths out of the Solent region.

Meridian were the founder investor in loveholidays and the largest shareholder outside the management team. The sale to Livingbridge Private Equity for £190m was their largest ever UK investment. This was a landmark transaction in the travel sector, for a business that did not even exist some 6 years ago. Loveholidays began as a start-up investment in 2012, and by 2016 had become the 2nd fastest  growth company in the UK according to The Times FastTrack 100.

Meridian backed loveholidays in 2012 as a significant cornerstone investor as part of a £2m initial fund raise, when the start-up had four employees, excluding Darren as a Board Member! Since then, Meridian had made various investments into the company as it continued to expand and outperform expectations, eventually becoming the 8th largest travel agent in the UK with its own unique technology platform.  

Meridian worked with the management team to refine their business model in the early years and then re-position the company to take advantage of the technology utilised behind the rapidly evolving travel market. This included moving the base business model from being an aggregator - selling travel on behalf of other companies - to being a fully licenced and accredited online travel agency selling its own travel inventory and employing c.400 staff.


Meridian remained heavily involved with the strategy of loveholidays until the 'investment journey' culminated in a £190m sale to private equity firm Livingbridge, which is understood to be their largest investment to date. As the largest shareholder outside the management team, Meridian realised a 20 times return on their investment.


This is a remarkable investment journey and one that ended in a sale price roughly equivalent to c.40% of the current market cap of Thomas Cook – a travel company and household names with roots dating back to 1841.


loveholidays is a clear example of a great investment into a market disruptor by Southampton based Meridian Growth Capital and was one of the most prominent exits in 2018.


Alex Francis, CEO of loveholidays commented, “Meridian backed the business at a very early stage in its development, recognising both the opportunity and the quality of the management team. Darren sat on the Board for the crucial 2 years post-investment and provided insight and valuable contributions that enabled us to make often difficult decisions. We are the fastest growing OTA in the UK and Darren’s continued input has always been readily sought as part of our exciting journey.”


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