ECI reaps 3.6x from Great Rail Journeys sale to Duke Street

Kenny Wastell
02 July 2018

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ECI Partners has generated a 3.6x money multiple from the sale of luxury rail holiday provider Great Rail Journeys to Duke Street.

The deal valuation remains undisclosed, though Unquote understands the transaction gives the company an enterprise value of around £100m.

According to recent reports by Unquote sister publication Mergermarket, a number of private equity players were involved in the auction process.

Under ECI's tenure, the company has expanded internationally, opening a New York office in 2017 and increasing its sales activity in both the US and Australia. It is also in the process of launching a rail-based luxury river cruise itinerary, which will take bookings for summer 2019 onwards.

Under its new owners, Great Rail Journeys will introduce new rail and cruise itineraries. Duke Street has also introduced Charles Gurassa – currently non-executive chairperson at Channel 4, non-executive deputy chairperson at EasyJet and senior independent director at Merlin Entertainments – as chairperson at Great Rail Journeys.

According to another recent report by Unquote sister publication Debtwire, the transaction was expected to include a leverage package of around 3.5x due to CAA guidance on maximum leverage for travel companies.

Previous funding
Great Rail Journeys (then known as Amber Travel) first received private equity backing when Primary Capital acquired it in 2005.

ECI then acquired Amber Travel from Primary in a deal valued at £50m in 2013, before rebranding the business. The GP was invested in the company via its ninth fund, a 2008-vintage vehicle that closed on £430m.

Company
Founded in 1981, York-headquartered Great Rail Journeys is a luxury rail holiday provider. It offers 400 itineraries across 50 countries.

It is understood the company generates a turnover of around £100m, while the aforementioned Mergermarket report stated the company was marketed based on an EBITDA figure of £12-13m.

People
ECI Partners – Chris Watt (managing partner).
Duke Street – Tom Salmon (partner).
Great Rail Journeys – Peter Liney (CEO).

Advisers
Company – Duff & Phelps (corporate finance); Travers Smith (legal); PwC (commercial due diligence); Deloitte (financial due diligence, tax).
Equity – Harris Williams (corporate finance); Ropes & Gray (legal); Alvarez & Marsal (financial due diligence, tax).