Risk Capital Partners, the private equity investment firm chaired by Luke Johnson, has completed two major acquisitions in the leisure industry – including the firm’s first move into the online travel market.
Risk Capital Partners has bought a majority stake in Cruise.co (Holdings) Ltd, the owner of the UK’s largest online cruise holiday websites Cruise.co.uk and Cruises.co.uk. This follows the announcement that it has taken a majority holding in Red Hot World Buffet, a UK restaurant groups with an annual turnover of GBP22m.
Cruise.co handles 65,000 cruise passengers every year, which generated an income of GBP64m last year alone. www.cruise.co.uk is the largest site in the UK for cruise reviews and cruise related questions and answers and publishes unique content and consolidates comparison tables of onboard facilities. The site also has direct access to every cruise line’s live inventory and pricing, providing users with real-time live availability. In addition, Cruise.co hosts the largest cruise forum community with 85,000 members where avid and new cruisers can engage in topics about cruising.
Luke Johnson, chairman of Risk Capital Partners, says: “It’s been a significant few days following the completion of both acquisitions and I am delighted that Risk Capital Partners can look forward to shaping the future of both Cruise.co and Red Hot World Buffet. The travel market is an exciting opportunity for us and as more people research online, leading websites have engaged with users and harnessed social media techniques. Cruise.co has a wealth of content in addition to market leading prices. There is a great opportunity to replicate this model into international markets where cruising and online research are growing rapidly.
“For both Cruise.co and Red Hot World Buffet, the key for us has been the emphasis placed on delivering value to the consumer. Both companies have impressed us with their vision and we look forward to supporting their ambitious growth plans.”
Risk Capital Partners is providing additional capital to support Cruise.co’s growth ambitions both in the UK and internationally, particularly the Irish and Australian markets where a strong cruising appetite has been seen. In addition to backing the management team of Seamus Conlon and Andrew Gardner, who together own the rest of the equity, Risk Capital Partners will use its record of investing in the leisure sector to further strengthen Cruise.co’s online expertise.
Seamus Conlon, managing director of Cruise.co, says: “We have spent some time getting to know Risk Capital Partners and are excited they have decided to invest in our business. Their acumen and results in the leisure space will be of huge value to us and we look forward to their expertise helping to shape the future of the business. We are well placed to take advantage of these shifts, and help customers and staff get together to share their experiences.”
