Minoan travel hits the acquisition trail

MINOAN Group, the Aim-quoted travel and leisure business run by former Airtours chief executive Duncan Wilson, is targeting Aberdeen and Edinburgh for acquisitions.

Willie Stewart, founder and chairman of Ayrshire-based Stewart Travel and a consultant to the group, said Minoan had enough financial fire power to spend “between £15 million and £20m every three months on acquisitions”.

Minoan took a 19.9 per cent stake in Stewart Travel in June for £278,100, valuing the business at about £1.4m. The sum was paid using Minoan stock.

The group had taken over Ayr-based King World Travel in March for £410,000 in the first step in its plans to build a UK holiday business.

Last week, Minoan added to its portfolio by snapping up Bishopbriggs-based John Semple Travel for £1.4m in cash and £200,000 in shares.

But Stewart said Minoan was looking to expand further. He said: “They’re committed to building a big business in Scotland and the north of England. They will obviously make takeovers in the order they come up, so the next one might be in the north-west of England. But they’re definitely targeting Edinburgh and Aberdeen.”

Stewart said that his own business was already benefiting from the link-up with Minoan, which now manages the firm with Stewart himself still at the helm.

He expects to grow his headcount by seven or eight next year from its present 60 to cope with the increase in business.

Stewart said his company would be able to take advantage of a general sales agency (GSA) agreement signed between Minoan and Canadian tour operator Sunwing Travel Group in May.

Under the deal, Sunwing will bring about 20,000 passengers to the UK next year via two flights a week into Glasgow airport, starting in June.

Stewart said he expected his firm to pick up business on the back of the GSA and under a number of other contracts he had signed, including providing a travel service for 29, a private members’ club in Glasgow’s Royal Exchange Square.