HgCapital Trust plc Regulatory News (HGT)

2 May 2006 16:48

HG Capital Trust PLC02 May 2006 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. On completion of the sale of Travelsphere Holdings Limited, HgCapital Trust plc,a listed investment trust giving investors the opportunity to participate in allof HgCapital's investments, will realise a total of £7.8 million. HgCapital and other shareholders sell Travelsphere for £155 million London 02 May 2006. HgCapital, the European sector-focused private equityinvestor, together with other shareholders including management, have soldTravelsphere Holdings Limited ("Travelsphere") to Electra Partners Europe for atotal consideration of £155 million. This is HgCapital's 10th realisation of aleisure investment in as many years. Travelsphere is the UK's leading direct-sell escorted tour operator serving theover 45 age group, operating under the three brands: Travelsphere, Page & Moyand Just You. HgCapital originally acquired a 40% stake in Travelsphere inNovember 2000 for a total consideration of £20.2 million, which was investedover the following two years. It subsequently supported Travelsphere'sacquisition of Page & Moy in November 2004. Following the sale, HgCapital's investment in Travelsphere will have returned£50.1 million to clients. HgCapital has worked with Travelsphere through some of the most turbulent yearsin the international travel sector. During this time the business has continuedto grow and, with its acquisition of Page & Moy, cemented its position as theUK's leading escorted tour operator for its target demographic. UnderHgCapital's ownership, revenues of the Group have more than doubled from £82million in 2000 to £169 million in 2005. Ben Hewetson, Director and Head of Leisure Investments at HgCapital said: "Travelsphere is an exceptional business and has grown considerably since ourinitial investment just over 5 years ago. The group has extended its productrange and now offers escorted travel to over 70 countries. It is firmlyestablished as the market leader in the escorted travel segment to its targetaudience. With its strong presence in the longer haul markets, the group is nowwell positioned to take advantage of the growing trends in the travel sector." Mark Watts, Managing Director of Travelsphere commented: "Travelsphere has benefited considerably from HgCapital's involvement. They haveprovided invaluable support through what has been an extremely challenging timefor the travel market. Their hands-on approach, combined with real expertise inthe travel sector has meant we have emerged from this difficult time asignificantly stronger business. We look forward to working with our new ownersin the next phase of our development." HgCapital was advised by UBS (financial), Lovells (legal) and Deloitte(accounting). Management were advised by PricewaterhouseCoopers. Enquiries HgCapitalBen Hewetson Tel: +44 (0)20 7089 7892 TravelsphereMark Watts Tel: +44 (0)1858 414 039 MaitlandSuzanne Bartch/Peter Ogden Tel: +44 (0)20 7379 5151 This information is provided by RNS The company news service from the London Stock Exchange