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loveholidays was a headline grabbing sale during 2018; fromcomplete start-up investment to the 8th largest travel company in the UK, theinvestment and exit was managed by Meridian and Shoosmiths out of the Solent region.
Meridian were the founder investor in loveholidays and thelargest shareholder outside the management team. The sale to LivingbridgePrivate Equity for £190m was their largest ever UK investment. This was alandmark transaction in the travel sector, for a business that did not evenexist 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 toThe 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, including 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.
