AYRSHIRE businessman Willie Stewart has sold the eponymous travel agency he founded 40 years ago to acquisition-hungry Minoan Group, the latest of a raft of takeover deals involving independent operators in Scotland.
Minoan is paying Mr Stewart and wife Ina up to £1.045 million for 80% of Stewart Travel, a business that has held firm amid tough times for consumers and a trend towards do-it-yourself holidays by specialising in cruises, corporate travel and golf holidays.
Glasgow-based Minoan, which is building a sizeable travel agency business under the leadership of former Direct Holidays chief executive Duncan Wilson, paid about £278,100 in shares for a 19.9% stake in Stewart Travel last year.
Mr Stewart will stay on at the firm and be involved with the wider Minoan group following the takeover deal, which was announced yesterday.
The announcement of Minoan's takeover of Stewart Travel, which employs 67 people and also trades as Scotland's Cruise Centre, came only two days after news of the sale of Glasgow-based cruise and golf holiday specialist Scotia Travel to Protravel of the US.
Minoan is paying an initial consideration of £545,000 for Stewart Travel, comprising £320,000 in cash and a convertible loan note of £225,000 repayable in cash at par value on either June 30 this year or June 30 2013. This loan note can alternatively be converted into ordinary shares in Minoan at 7.5p per share at any time until June 30 2013.
Minoan shares yesterday rose 0.25p or 4% to 6.375p.
The Stewarts will also be entitled to an additional "earn-out" cash payment of five times net profits in excess of £150,000 for the period from March 1 to October 31 this year.
Alternative Investment Market-listed Minoan noted that, given the earn-out would be payable only on profits up to £250,000, the maximum payable under this arrangement would be £500,000.
Mr Wilson said Minoan's travel agency business had grown from being only him, one year ago last week, to having 180 people.
He moved the headquarters of Minoan to Glasgow recently, from London, after acquiring Scottish firms.
He noted Stewart Travel, which has branches in Ayr, Prestwick, and Troon, had celebrated "having been in existence for 40 years" on Wednesday.
Referring to Mr Stewart, who has held office with the Association of British Travel Agents, Mr Wilson said: "He is going to be part of the story going forward ... he is a very well-known figure. He wishes to stay on, and we wish him to stay on."
Noting Mr Stewart is chairman of Advantage, a consortium of 800 independent travel agencies, Mr Wilson said: "We are going to try to do some collaborative things with them."
Minoan yesterday provided an upbeat assessment of its current trading.
It said the bookings of its businesses, including Stewart, were in the four months to the end of February down only 2% on the same period of the prior year.
Minoan added: "This compares with tough general market conditions where bookings, according to latest industry figures, are approximately 14% down on the comparable period in 2011."
It noted the bookings of its businesses in the key trading period of January and February were "in line" with a year earlier, with sales commission about 5% ahead.
Minoan, set up to exploit 26 million square feet of land with more than 20 miles of coastline in which it has an interest in the Sitia region of the Greek Island of Crete, appointed Mr Wilson as managing director in late 2009 to build a travel business.
In September last year, Minoan announced the £2m acquisition of Scottish firm John Semple Travel, a specialist in cruise, golf and ski travel, as well as in Canadian holidays. It acquired Ayr-based King World Travel in March last year.
Mr Wilson revealed yesterday that Minoan was working on one further acquisition, of a travel agency business outside Scotland. It is also looking at a further alliance, having already formed link-ups to give it access to Canadian and French destinations.
He also highlighted an appetite for acquisitions in either Edinburgh or Aberdeen, where Minoan has no presence just now.
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