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Risk Capital makes 5x on sale of Neilson to LDC

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Risk Capital Partners has sold UK-based holiday company Neilson Active Holidays to LDC.

The sale generated a return of more than 5x for the vendor after a five-year holding period.

Financial details of the transaction remain undisclosed, though Unquote sister publication Mergermarket recently reported that Risk Capital was targeting a sale valued at around £80m.

Neilson focused on expanding its beach club offering and establishing itself as an independent company under Risk Capital's tenure, with the GP having originally carved the business out from the Thomas Cook Group. It now generates a turnover of £80m, according to a statement, up from £70m at the time of the vendor's initial investment.

Under its new owners, the company will undertake an acquisitive international growth strategy. It will also look to offer departures from a greater number of UK airports and expand its portfolio of beach clubs and mountain hotels.

LDC investment directors Richard Whitwell and David Bains will take a seat on the Neilson board of directors as part of the deal.

Debt
RBS and HSBC provided a debt package to support the transaction.

Previous funding
Risk Capital backed the management buyout of Neilson from the Thomas Cook Group in 2013.

Company
Founded in 1978, Brighton-headquartered Neilson operates beach clubs, ski hotels, ski chalets and a fleet of yachts for activity-related holidays.

People
Risk Capital Partners – Luke Johnson (chairperson).
LDC – Richard Whitwell, David Bains (investment directors).
Neilson Active Holidays – David Taylor (CEO); Richard Bowden-Doyle (chairperson).

Advisers
Equity – DC Advisory (M&A); Browne Jacobson (legal); CIL (commercial due diligence); EY (financial due diligence); JLT (insurance due diligence); KPMG (tax); WA Communications (political due diligence); White Hart Associates (regulatory due diligence); FB Systems (IT due diligence).
Company – Cavendish Corporate Finance (M&A); PwC (financial due diligence); Armstrong Transaction Services (commercial due diligence); CMS Cameron McKenna (legal).
Management – Liberty Corporate Finance (corporate finance).
Debt – DLA Piper (legal).

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