First Choice snaps up holiday firm

TOUR operator First Choice is to expand into rafting and discovery holidays after a £8.8m deal today to buy Exodus Travels. The company said the deal reflected its strategy of investing in 'specialist niche businesses'.

Set up 28-years ago, Exodus runs small group tours to more than 80 destinations, from cycling in France to high-altitude trekking in Nepal.

Exodus is the main trading subsidiary of Trek Invesco, which First Choice is buying from Royal Bank of Scotland private equity and the management. First Choice has agreed to pay a further £1.5m depending on the level of profitability in the first year of trading.

Exodus' managing director David Gillespie will be staying with the business to help it grow within First Choice's own specialist arm.

The tour operator runs a sailing holiday division alongside its mainstream First Choice and Unijet package holiday business.

First Choice's chief executive Peter Long said: 'Exodus fits perfectly with our criteria for acquiring specialist businesses. It has a clearly focused business model with premium margins, excellent growth potential, strong brand recognition and proven management expertise.'

First Choice is due to report interim results for the six months to 30 April on 11 June 11. It cut 1,100 jobs last year following 11 September.