On the Beach basks in latest deal to buy rival firm
THE sun is shining on online travel specialist on the Beach Group as it snaps up a rival business for £12m.
The Cheadle headquartered listed company has bought sunshine. co.uk, an online travel agent based in Northampton.
The deal will be funded from the group’s existing cash resources and bank facilities via extension to on the Beach’s existing working capital revolving credit facility with Lloyds Bank.
The board has confirmed the acquisition will not impact the group’s ability to pay dividends.
The also said the acquisition will be earnings enhancing in the current financial year to 30 september 2017 and will accelerate on the Beach’s growth while creating short to medium term synergies and further margin opportunity.
simon Cooper, Ceo of on the Beach Group, said: “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.”
sunshine reported gross assets of £18.6m and eBITDA of £1.6m for the thirteen month period to 30 september 2016.