Case Study - Explorers Travel Club

Explorer’s Travel Club are the UK’s leading operator of diving holidays, primarily to Sharm-el-Sheikh in Egypt. Explorers had revenues of c.£10m and profits of c.£500,000.

The business was owned by Brian McGee who founded and built the business over a 20 year period. Stewart Lambert worked closely with Brian for 12 months assessing his options and deciding whether to sell the company in its entirety to one of the major tour operators or to undertake a partial sale to a venture capital company.

Brian decided that a total sale would be the most suitable option and would meet all his objectives. Stewart put together a disposal process and prepared an Information Memorandum selling the benefits of acquisition to potential acquirers.  Explorers received a wide range of offers from the major operators that were significantly ahead of Brian’s expectations.

Brian decided to proceed with TUI and sold the business for a maximum consideration of c.£10million comprising cash at completion and future payments that depended on the performance of the business.

The transaction was complicated by the unrest in Egypt and Sharm-el-Sheikh during the sales process but through hands on management, Stewart ensured TUI remained committed to the acquisition through highlighting the long term strategic benefits.