The British online cruise travel agent Iglu is on the brink of a major £100 million takeover by an Australian travel giant, Flight Centre Travel Group (FCTG), according to industry reports.
Deal Details and Key Players
Sky News has learned that a deal for Iglu could be announced imminently. The sale process is being managed by the investment bank Rothschild on behalf of Iglu's shareholders.
The current majority shareholder, LDC – the private equity arm of Lloyds Banking Group – is close to finalising the sale. LDC originally backed the business, which was founded by Richard Downs, a decade ago.
Strategic Expansion in the Cruise Market
This potential acquisition aligns perfectly with FCTG's strategy to strengthen its position in the lucrative cruise holiday market. Just last year, the Australian company, which is listed on the Australian Securities Exchange, announced it was reviving its Cruiseabout brand.
FCTG is no stranger to acquiring UK travel brands, having purchased the luxury tour operator Scott Dunn for just over £120 million nearly three years ago.
Post-Pandemic Recovery and Industry Outlook
Like many in the sector, Iglu has staged a impressive recovery since the COVID-19 pandemic threatened to decimate the global travel industry.
The cruise market's robust comeback is underscored by industry forecasts. A closely watched report last year predicted that the number of global cruise passengers would soar from 31 million in 2023 to 39 million by 2027, highlighting the significant growth potential that makes companies like Iglu attractive assets.
When approached for comment, LDC did not respond.
