Background

FRP was approached by the management team at Zip World UK to advise on their private equity investment offers in support of the company’s ambitions to roll out adventure experiences across the UK and beyond. Zip World was founded in 2014, and had grown impressively to revenue of £14 million.

The business attracts over 400,000 visitors to its sites, currently in North Wales, each year. The experienced management team were led by co-founder Sean Taylor and Managing Director David Stacey.

Action

FRP’s role was two-fold. Our initial role focused on assessing the offers received from several private equity houses. This was to enable the management team to appraise the offers they had received and make a strategic decision on which party to ultimately proceed with.

Our team also undertook all financial modeling work for the management team regarding the eventual Zip World investment offer from mid-market private equity investor LDC.

We constructed a financial model that encompassed all existing attractions as well as planned new sites and attractions in future years.

Outcome

Ultimately, LDC’s offer of £45 million for the business was accepted and the investment completed on Christmas Eve. FRP was instrumental in enabling the deal to succeed, as the financial model gave LDC the comfort they required to continue with the transaction.

Our team worked closely with the other advisers involved in the transaction, in particular the sell-side adviser to Zip World’s shareholders. The investment from LDC will support Zip World’s ongoing growth strategy as the business looks to add new attractions to its current sites and rollout its adventure experiences across the UK and abroad. The business is aiming to double in size in the three years post-sale.

45

£45 million

LDC’s investment in Zip World

Related team

Mark Naughton

Mark Naughton

  • Partner
  • Corporate Finance
  • Bristol