SHEARINGS, Europe’s largest coach holidays group, was put up for sale yesterday after financial institutions rejected its proposed £100 million flotation because it was too expensive.
The company, based in Wigan, is understood to have kept the option of a sale in mind as it prepared to float on London’s Alternative Investment Market. A sale of the company, which runs 226 coaches and 36 hotels, is now the preferred option for its private equity shareholders to exit their investment.
John Slatcher, chief executive, said: “The company is not formally up for sale. But, as with any company, we would consider an offer at the right time and the right price.”
Shearings’ private equity shareholders, led by Bridgepoint, are known to be keen to sell the business that they bought eight years ago. Shearings was in advanced talks to sell to a UK rival, thought to be Wallace Arnold, in September 2001, but the sale was withdrawn after the terrorist attacks in the US.
Bridgepoint owns about 30 per cent of Shearings, while several other private equity firms, including CVC Capital Partners, Legal & General Ventures and PPM Ventures, own another 30 per cent. The remaining shares are held by staff and management at the company, which has more than 2,000 staff.
Advertisement
At the proposed flotation price, Shearings would have had £25 million of equity and £75 million of debt, giving it a total value of £100 million. The listing would have raised £25 million of new money, which would have paid off some of the debt.
The float valued the combined 23 per cent equity stake of the company’s seven most senior managers, led by Mr Slatcher, at just less than £6 million. A combined 16 per cent stake of 150 staff, including waitresses, drivers and middle managers, would have been worth £4 million.
Wallace Arnold, owned by 3i, the venture capital firm, is expected to bid for Shearings.