Livingstone’s consumer sector team has advised ISIS Equity Partners on its GBP9m investment in the management buy-out of Key Travel, with Livingstone’s debt advisory team advising on the leveraged debt facilities.
Key is a travel management company (TMC) dedicated to serving the travel requirements of the not-for-profit, academic and faith sectors with clients and offices in the UK (Manchester, London, Liverpool and Edinburgh), Europe and the US.
With over 30 years’ experience within these sectors, Key provides airline tickets, hotels, rail tickets, visas and risk management services to clients including charities and universities. These include Oxfam and Save the Children and universities of Bristol, Cambridge, and Liverpool. Its services are provided both offline via a dedicated advisor service and online via its website.
The MBO was led by Key’s chief executive Spence Knudson. In 2013 Key expects turnover to be more than GBP100m as the business continues to grow both in the UK and internationally.
The investment by ISIS will support the business as it looks to grow its presence in the UK academic market, continue its penetration of the UK charity market, retaining its current status as market leader in this field. The investment will also support the company as it looks to accelerate its growth in the US, following its acquisition of US-based World Travel Management in 2010.
As part of Livingstone’s Travel sector focus, James Lever, partner at Livingstone London, has maintained an active dialogue with Knudson since 2008. The deal is the most recent of several travel sector transactions for Livingstone, following the sales of TravelJigsaw, Reed & Mackay and Iglu.com.
Knudson says: “We are delighted to announce this exciting milestone in the Key Travel story, enabling us to continue to grow as an independent TMC providing our customers with high quality service at affordable prices. The management team investment demonstrates their commitment to the future of the business and I personally look forward to leading the next phase of our development with them and the support of ISIS.”
Christopher Jones, director at Livingstone London, says: “We are delighted to have advised ISIS on this exciting investment. Our extensive experience in the travel sector positioned us well to advise on the transaction and we are confident that Key will go from strength to strength with the support of ISIS.”
Bill Troup, managing director, debt advisory, Livingstone London, says: “Key is a well managed, fast growing business in its sector. Through a competitive process, we secured an excellent leveraged debt package from Lloyds Bank’s northern acquisition finance team to support the transaction.”
