MINOAN Group's Scottish-based travel agency operation has unveiled its first acquisition south of the Border - a deal to buy about 20 per cent of the Miles Away chain.
The deal could be a harbinger of a full takeover of Miles Away.
The transaction, which is subject to contract, will see Minoan enter into a formal strategic partnership with Miles Away.
Minoan did not disclose the price being paid for the minority stake but it is believed to be hundreds of thousands of pounds, meaning that the deal puts a value on Miles Away which is well in excess of £1 million.
Minoan chief executive Duncan Wilson, who runs his company's travel agency operation from Glasgow, yesterday highlighted his appetite for further acquisitions south of the Border and in English-speaking markets overseas as he unveiled the Miles Away transaction.
The acquisition of the stake in Miles Away is being made through Minoan's wholly-owned Stewart Travel subsidiary.
Minoan's strategy to date suggests a likelihood that it could in time make an offer to buy the remainder of Miles Away, which is based in south-west England and has a presence in south-east Wales. Miles Away has 12 shops, the same number as Minoan has already in the wake of a string of acquisitions in Scotland.
Minoan noted that the combined total transaction value of its travel agency business and Miles Away was expected to be about £100 million in the coming financial year.
Mr Wilson said that this £100m annual total transaction value had been the three-year target when he set out to build a travel agency business for Minoan, which has long been pursuing a major tourism development at Sitia on the Greek island of Crete.
He noted that he would be about one-and-a-half years late in achieving this target, but highlighted his intention to accelerate the pace of expansion of the travel agency business from here through further acquisitions and organic growth, including branch openings.
Minoan will soon open an office in Belfast, under the Stewart Travel brand.
Mr Wilson said the company was also looking at opening one or two branches in the Nottingham and Derby area.
He highlighted the travel industry experience of Miles Morgan, founder and managing director of Miles Away. The Minoan chief executive, who previously ran the Direct Holidays business built by John and Hugh Boyle, cited Mr Morgan's former role as sales and marketing director at travel agency Thomson.
Mr Wilson said that Minoan had been looking for an acquisition in England for more than a year, and hailed Miles Away as a perfect fit.
He noted that Miles Away had a foreign exchange business, and Minoan could learn from this. Similarly, Minoan had a corporate travel business, but Miles Away did not at the moment.
Mr Morgan said: "Duncan and I have been talking about a prospective way forward for some months. Having taken that time and looked at both entities I am confident that this will add immediate value to both parties, and allow us both to further succeed in our chosen markets. I have no doubt that this strategic investment from Stewart will be good for Miles Away and all the staff. We have some exciting opportunities to grow Miles Away, and I am aware of some of the other plans that Duncan and his team are working on. I look forward to what should be an exciting time for us all."
Mr Wilson said: "Stewart has already built up a strong presence in Scotland and it is well known that we have been interested for quite some time in having a presence south of the Border.
"The first and most important aspect of beginning a partnership for the company is that the ethos, culture and future vision for travel distribution has to be a shared one. We believe that in Miles Away as a business, and in Miles as a person, we have the perfect match for our first step into England."
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