Inflexion To Wed Scott Dunn In £70m Deal

The luxury travel group Scott Dunn is close to a £70m takeover by the investor which last year tried to buy the education business set up by Jeremy Hunt, the Health Secretary.

Sky News understands that Inflexion Private Equity could sign a deal to buy Scott Dunn, which specialises in upmarket holidays, honeymoons and ski resort packages, as soon as this weekend.

If completed, an announcement is expected to be made early next week.

A £70m deal would exceed the initial price expectations of Andrew Dunn, the travel company's founder and chairman, who appointed Cavendish Corporate Finance to examine options for expanding the business.

Inflexion is among the most prolific private investors in mid-sized UK companies, holding stakes in businesses such as On the Beach, another online travel agent, and Jack Wills, the fashion brand.

The private equity firm recently raised a £1bn fund to invest in companies following a string of successful exits from earlier deals.

Last year, it held detailed talks about buying Hotcourses, an online education business founded by Mr Hunt, but failed to reach agreement.

Scott Dunn was set up in 1986 soon after Mr Dunn graduated from university, and now makes annual profits of around £6m.

The takeover of Scott Dunn will be among a flurry of travel industry deals, including the prospective sale of Riviera Travel to Phoenix Equity Partners for a price thought to be around £130m.

Earlier this week, Lastminute.com was sold to Bravofly Rumbo Group, an online travel company listed on the Swiss stock exchange.

The value of the UK-based internet company has slumped since its peak during the first dotcom boom, and was offloaded by Sabre Holdings, its US parent, for just £76m.

An Inflexion spokesman declined to comment.