Business
Acquisition of Sunshine.co.uk Limited
Acquisition of Sunshine.co.uk Limited.
About this update from On The Beach Group Plc
[{"type":"text","content":"\n \nRNS Number : 6656E On the Beach Group PLC 10 May 2017 \n\n10 May 2017\nOn the Beach Group plc \n(\"On the Beach\" or the \"Group\") \n \nAcquisition of Sunshine.co.uk Limited\n \nOn the Beach Group plc (LSE: OTB.), a leading UK online retailer for beach holidays, today announces that its subsidiary On the Beach Travel Ltd has agreed to acquire the entire issued share capital of Sunshine.co.uk Limited, an online travel agent based in the UK (\"Sunshine\"), for a total consideration of £12.0m (on a cash free debt free basis).\n \nThe consideration will be funded from the Group's existing cash resources and bank facilities in the form of an extension to the Group's existing working capital revolving credit facility with Lloyds Bank plc. The consideration will be split with 75% paid on completion and the remaining 25% in December. The Board confirms that this transaction will not impact the Group's ability to pay dividends in line with its stated policy.\n \nSunshine reported gross assets of £18.6m and EBITDA of £1.6m in its latest statutory audited accounts for the thirteen month period to 30 September 2016. Sunshine is highly complementary to On the Beach and the transaction will add circa 200,000 customers to the 1.2m customers currently travelling with On the Beach to our focused range of hotels in key beach destinations. The additional passenger volumes will significantly enhance OTB's opportunity to drive an increasing proportion of business into exclusively contracted product and an ability to leverage incremental margin.\n \nThe Board believes that the acquisition will be earnings enhancing in the current financial year to 30 September 2017 because of the Group's ability to quickly leverage its modular technology platform to deliver a market leading customer proposition, access directly sourced, higher margin product and deliver proprietary personalisation and bid management technology. The acquisition will accelerate On the Beach's growth and the compelling economic benefits of scale will create short to medium term synergies and further margin opportunity. \n \nSimon Cooper, Chief Executive of On the Beach Group plc, commented:\n\"We are delighted to have acquired a brand as well-established with beach holidaymakers as sunshine.co.uk. This earnings enhancing transaction r...