- The UK-based leisure travel company Scott Dunn will be acquired by Flight Centre Travel Group.
- The purchase will increase earnings per share by a mid-teens percentage for the fiscal year 2023.
- Flight Centre revealed that their half-year revenue tripled to $1.10 billion.
The UK-based leisure travel company Scott Dunn will be acquired by Flight Centre Travel Group as part of a deal with an enterprise value of 121 million pounds ($149.39 million), the company announced on Tuesday.
Several leisure travel brands are currently run by the Australian travel firm in a number of nations, including the UK.
Graham Turner, managing director of Flight Centre, said in a statement that “Scott Dunn provides an entry point into the UK and US luxury travel market through a well-regarded, scalable brand which will be supported by FLT’s global platform.”
The travel management company predicted that the purchase will increase earnings per share by a mid-teens percentage for the fiscal year 2023.
According to Flight Centre, the acquisition will be financed by a share offering for A$180 million ($127.04 million) and A$40 million in cash.
The offer price for the capital offering will be A$14.60 per share, which is 8.4% less than Flight Centre stock’s last close price on Friday of A$15.83.
Flight Centre also stated that it now anticipates half-yearly group revenue for fiscal 2023 to more than triple to A$1.10 billion.
It anticipates an underlying EBITDA of A$95 million, compared to a loss of A$184 million last year, and good margins, returning to profitability. In fiscal 2023, it projects that underlying EBITDA will be in the $250–280 million Australian dollar range.
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