Business
Proposed Acquisition of PGL
Proposed Acquisition of PGL.
About this update from Harbour Energy Plc
[{"type":"text","content":"\n Holidaybreak PLC\n18 May 2007\n\n\n Not for release, distribution or publication, in whole or in part, in or into\n the United States, Canada, Australia or Japan\n\nFOR IMMEDIATE RELEASE\n\n18 May 2007\n\n Holidaybreak plc\n\n Proposed Acquisition of PGL\n\n\nHolidaybreak, the European specialist holiday group, today announces the\nproposed acquisition of UK schools trips organiser PGL by its wholly owned\nsubsidiary, PGL Holdings, for an expected £50m for the equity, and will\nrefinance an expected £50m of debt within PGL\n\nHighlights:\n\n • Holidaybreak announces the proposed acquisition of PGL, the market\n leader in the residential, outdoor education and adventure sector for UK\n schools, which organises trips for over 250,000 children each year, by its\n wholly owned subsidiary, PGL Holdings.\n\n • PGL has a strong brand name and reputation within the sector, enjoys\n long-term relationships with schools and achieves high levels of customer\n retention.\n\n • PGL operates 26 activity centres located across the UK, France and\n Spain. In the year ended 22 February 2007, PGL's revenues were £50.6 million\n (£47.0 million in 2006) and EBIT was £6.3 million (£5.0 million in 2006).\n PGL's property portfolio has been valued at approximately £93.0 million.\n\n • PGL has the opportunity for further growth given the active promotion of\n the benefits of outdoor learning by the UK government, the ongoing trend of\n schools to outsource outdoor learning programmes to commercial providers and\n the reduction in the number of local education authority centres.\n\n • PGL has a strong fit with Holidaybreak given its market leading\n position, growth and high operating margins. PGL's seasonal variations in\n demand are complementary to those of Holidaybreak.\n\n • Holidaybreak will acquire the equity of PGL for an expected £50 million\n for cash or loan notes and will refinance an expected £50 million of debt\n within PGL.\n\n • The Acquisition will be earnings enhancing for the Group (before any\n one-off costs and amortisation of intangible assets) for the year ending 30\n September 2008, the first full financial year after the Acquisition (see\n Note 3).\n\n • PGL to become Holidaybreak's Education Division, the fourth operating\n division within the Enlarged Group.\n\n • It is the intention of the Board ...