On the Beach Group snaps up UK travel agent in £12m deal

Online beach holiday retailer On the Beach Group plc has this morning (May 10) announced a multi-million pound deal to purchase online UK travel agent Sunshine.co.uk Limited.

The Stockport-based firm’s On the Beach Travel Ltd subsidiary agreed to acquire the entire share capital of Sunshine for £12m.

The group will fund the transaction with its cash resources and an extension to its existing Lloyds Bank working capital revolving credit facility.

The total amount will be settled in two parts, with 75% paid upon completion and 25% in December.

In the 13 months to 30 September 2016, Sunshine reported an EBITDA of £1.6m with gross assets of £18.6m.

On the Beach said the deal will add around 200k customers to its 1.2m customer pool and be earnings enhancing in the current financial year to 30 September 2017.

Simon Cooper, On the Beach Group CEO, commented: “We are delighted to have acquired a brand as well-established with beach holidaymakers as sunshine.co.uk.

“This earnings-enhancing transaction reflects the Board’s ambition to consolidate On the Beach’s leading position in the online beach holiday space while supporting our drive to exclusivity and underpinning our ability to further leverage our scale.”

In October last year, On the Beach Group reported trading well despite facing difficult conditions in the travel and tourism market.