Primary Capital backs £35m MBO of Leisure Pass

Carmen Reichman
14 May 2012

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Primary Capital has backed the ТЃ35m management buyout of London-based tourist pass systems provider Leisure Pass Group.

The firm paid £17.5m in equity for a majority stake of around 75%.

The investment was made from the GP's £200m Primary III fund, which closed in 2006 and has since invested in eight other businesses, including Yo! Sushi and Paperchase.

Leisure Pass seeks to develop its products and cover further cities in and outside Europe, according to the GP.

Debt
Senior debt of £11m was provided by the Royal Bank of Scotland.

Company
Leisure Pass was founded in 1998 and soon after launched its eponymous product, which provides access for tourists to major London attractions. Over 1.3 million people have used the pass since then, and the business has expanded to Paris and Berlin.

People
Rob Foreman and Alec Parkinson from Primary Capital led and structured the deal with Leisure Pass's management, headed by CEO Darran Evans. They will take seats on the company's board as non-executive directors.

Advisers
Equity – Olswang, Stephen Rosen, Fiona Twigg, Carsten Greve (Legal); BDO, Graham Elsworth, Dougal Baxter, Richard Rose (Financial due diligence, tax); Armstrong, Robin Illingworth, Edward Hikmet (Commercial due diligence); Alvarez & Marsal, Martin McKay, Yawar Murad (Technical due diligence).
Debt – Spectrum CF, Ian Milne (Debt advisory).
Company – Hogan Lovells, Alan Greenough, Amanda Onions (Legal); Livingstone, Jeremy Furniss, Daniel Domberger (Corporate finance).
Management – Hogan Lovells, Alan Greenough, Amanda Onions (Legal); Spectrum CF, Simon Davies, Richard Bradley (Corporate finance); DSA Taxation, Nick Byfield (Tax).