LONDON, Dec. 03, 2003 (PRIMEZONE) -- lastminute.com plc, the leading online provider of travel and leisure solutions, today announces the purchase of a UK hotel consolidator and package holiday reseller, Med Hotels (comprising of Med Hotels Limited and Travel Bargains Limited), for 16.1 million which will be satisfied by 8.0 million in cash and the issue of 2,941,176 new shares in lastminute.com plc.
In addition to the initial consideration, lastminute.com will pay further consideration depending on the EBITDA performance for the years to 31 October 2003, 2004 and 2005. The additional consideration has been capped to a maximum of 6.5 million and may be satisfied in either new shares or in cash at the option of lastminute.com plc.
Highlights of the transaction:
-- earnings enhancing in the year of acquisition
-- further broadens the hotel database -- access to over 1500
resort based properties providing net rate room allocations
without commitment, especially in Greece, Spain, the Canaries,
Cyprus, Tunisia and Portugal
-- 100% of the hotels product is sold online mainly through trade
relationships
-- adds significant resort hotel scale for use in dynamic packaging,
principally for the key summer period
-- supplements TTV (Total Transaction Value) of the existing
lastminute.com hotel product by over 75%
-- transforms the existing 'holiday hotels' proposition to the
travel trade both in the UK and Germany
-- creates an opportunity to deliver further revenue and cost
synergies by combining the existing lastminute.com hotel resort
inventory with Med Hotels.
Med Hotels is a successful and profitable company that has grown substantially over the past two years, mainly in the hotel product category. Innovation has been part of the success of Med Hotels demonstrated by nominations at the British Travel Awards 2003 for the Best Holiday Add-On and Innovation.
The aggregated last published audited accounts of Med Hotels and Travel Bargains, for the year to 31 October 2002 showed sales of 38.6 million, gross profit of 5.3 million and EBITDA of 0.1 million. Net assets at that date amounted to 0.3 million. Med Hotels is essentially a UK based operation with a staff of 112 people based in Woking and five in overseas offices.
John Kent, the Chief Executive of Med Hotels, will continue with the Group leading the resort hotel contracting teams, including the contractors within the 'holiday hotels' business acquired earlier this year.
The initial consideration shares to be issued to management, amounting to 1,838,235 shares, are the subject of a lock-up period for up to 12 months. Application has been made to the UK Listing Authority and The London Stock Exchange for all new shares to be admitted to the Official List and to trading on The London Stock Exchange's market for listed securities ("Admission"). It is expected that Admission will become effective from 8am on 5 December 2003 and dealings will commence at that time.
Commenting on the transaction Brent Hoberman, Chief Executive Officer of lastminute.com said:
"I am delighted that John and the team at Med Hotels are joining the lastminute.com Group. The combination adds significantly to our overall scale in this important product category and improves our consumer hotel offering. In addition the acquisition will further leverage the holiday autos trade relationships, especially in the UK and Germany."
John Kent, Chief Executive Officer of Med Hotels, added:
"Med Hotels is a dynamic business which has achieved substantial growth over the last two years. By becoming part of lastminute.com we will have the opportunity to increase that rate of growth significantly and build a formidable online hotel business"
Notes to editors:
About lastminute.com
lastminute.com operates directly in thirteen European countries and participates in three international joint ventures, providing travel and leisure inspirations and solutions to customers. At 30 September 2003 lastminute.com had over 7.7 million subscribers to its award winning weekly newsletter and had established over 15,500 supplier relationships. The business is based on the idea of matching supply and demand. lastminute.com offers consumers opportunities to acquire airline tickets, hotel rooms, holidays (both self packaged and third party packages), car hire, entertainment tickets, restaurant reservations and food delivery, speciality services, gifts and auctions.
More information available at www.lastminute.com/ir.
About Med Hotels
Travelbargains was formed by John Kent and Ian Brooks in January 2001 as a call centre based travel agency retailing holiday packages to predominately UK travellers. Med Hotels, a hotel consolidator was formed in July 2002 and offers access to over 1500 resort based properties providing net rate allocations without commitment, especially in Spain, the Canaries, Cyprus, Tunisia and Portugal. The company has grown substantially during the past two years offering hotel product principally to trade customers in the UK and Germany. It employs 117 people, 112 based in the UK in Woking and five in overseas offices.