- Flight Centre (FLT) is set to raise $180 million to fund the acquisition of UK-based luxury travel business Scott Dunn
- The purchase will enable Flight Centre to enter the UK and US luxury travel markets
- Flight Centre Managing Director Graham Turner says Scott Dunn “ticks the main boxes” the company has defined to play in the luxury segment
- The acquisition will help FLT diversify its northern hemisphere leisure footprint in line with its strategic objectives
- Flight Centre called a trading halt ahead of the planned capital raise, but shares last traded at $15.83 on Monday afternoon
Flight Centre (FLT) has launched a $180 million institutional placement to fund the acquisition of UK-based luxury travel business Scott Dunn.
The £121 million (A$211 million) purchase opens the door for Flight Centre to enter the United Kingdom and United States luxury travel markets through the Scott Dunn brand.
Flight Centre will fund the deal through the $180 million placement, along with $40 million of existing cash from its balance sheet. Eligible existing shareholders will be able to participate in a non-underwritten share purchase plan to raise up to a further $40 million.
Flight Centre Managing Director Graham Turner expressed his delight over the acquisition.
“The business ticks the main boxes that we have defined to play in the luxury segment: exceptional service/high quality, an authentic brand with desired benefits. It has a prestigious image, commands a premium price and is capable of inspiring deep connections with customers,” Mr Turner said.
Mr Turner also said Flight Centre would be able to help Scott Dunn achieve its intended objectives and “unlock a new era of growth”.
Flight Centre said it expected preliminary unaudited H1 2023 total transaction value (TTV) of $9.9 billion, group revenue of $1 billion and group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $95 million.
Scott Dunn CEO Sonia Davies said the acquisition was an exciting growth opportunity for both parties.
“We are proud of how strong the Scott Dunn brand has become in the UK and now in the US and Singapore and of our commitments to being a responsible business,” Ms Davies said.
“We’re excited now to continue our journey and accelerate our growth with the Flight Centre Travel Group.”
The acquisition will help FLT diversify its northern hemisphere leisure footprint in line with the company’s strategic objectives of expanding in its core markets and developing a global luxury collection of travel brands.
Flight Centre called a trading halt ahead of the planned capital raise, but shares last traded at $15.83 on Monday afternoon.