Zip World sold in £100m deal with sights set on further expansion
Adventure giant Zip World has been sold in a £100m deal that paves the way to further expansion, the Sunday Times reports. The company was founded in 2013 by former Royal Marine Commando Sean Taylor, who will retain a minority stake, said the newspaper.
Zip World was sold to Dolphin Capital, which will take a majority shareholding in the Llanrwst-based company. The private equity firm already has a portfolio that includes the likes of Snowcentres, Techmet and Dynisma in its portfolio.
Last week Zip World announced it was closing its Conwy site at Dolgarrog after “much careful consideration”. It followed news that the company is to open its latest adventure attraction, Zip World London, at the Queen Elizabeth Olympic park on Valentine’s Day.
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Writing on LinkedIn, Zip World chief executive Andrew Hudson said of the investment deal: “The leisure and hospitality sector has faced incredible challenges over the past few years, but resilience, vision, and strategic investment have kept Zip World on a strong trajectory. This week, I’m proud to share that Dolphin Capital has joined us as a key partner, enabling us to expand further and invest in new and existing sites across the UK.
“This partnership emphasises the strength of our strategy and the incredible work of our team. As we look ahead to 2025, our focus remains on growth, innovation, and delivering unforgettable experiences for our customers. With B Corp certification achieved last year, we’re proving that sustainability and success can go hand in hand.”
In December 2018, Sean Taylor sold a 40% stake in Zip World to Lloyd’s private equity arm, LDC. The deal valued the company at £45m at the time. The North Wales Live Whatsapp community for top stories and breaking news is live now - here’s how to sign up
LDC originally backed the company’s management team to support Zip World’s growth strategy. Since then, Zip World has more than doubled the number of sites in North Wales, launched new adventure attractions and diversified into accommodation, including a hotel and luxury forest lodges.
The company now has has eight sites across Wales and England, including the world’s fastest zip line, Velocity, at Penrhyn Quarry. Growth has been supported by investments in merchandising and food and beverage as well as in its people and systems.
As well as its new London attraction, Zip World is aiming to open another new site this year in Elterwater, Cumbria. The company also has plans for a new ride at Penrhyn Quarry that it claims will be “the largest of its type in the world”.
The deal provides an exit for LDC after six years. Dewi Hughes, the firm’s South West and Wales head, said Zip World was an “important Welsh business” that had achieved strong growth during its partnership. He added: “Zip World is a progressive, dynamic and ambitious business in the UK adventure space.”
Zip World’s £100m valuation was equivalent to 10 years of historical earnings at the business before interest, tax depreciation and amortistion. Sign up for the North Wales Live newsletter sent twice daily to your inbox