UK private equity firm Piper has invested £7m into Scottish travel tour company Rabbie’s.
Founded in 1993 by Robin Worsnop, the Edinburgh-based business began with him taking small groups of travellers around Scotland in his first 16-seater mini-coach. Today, it has almost 100 vehicles operating small group tours across the UK, alongside partnerships in Ireland and Europe.
Sales grew to £17m in 2019, with 80% of revenue currently from trips in Scotland. Rabbie’s also recently expanded into Europe, with trips in Spain, Portugal, Italy and Switzerland.
Sales have rebounded post-pandemic and bookings in April were 25% above April 2019.
Piper’s minority investment will see Worsnop continue to stay on the board as a majority shareholder, alongside the core management team of managing director Hazel Rickett, sales and marketing director Heather Reekie and operations director Alec Lee.
They will be joined by Hugo Kimber as chairman, who was previously executive chairman of adventure tours brand Explore.
The investment should help the business maintain its position in the market, while driving brand awareness among inbound tourists and domestic travellers.
It is the first investment from Piper’s seventh fund, and second in travel following its £7m investment into Mediterranean villa brand The Thinking Traveller in November 2020.
Worsnop said: "We are thrilled to find a partner that shares our values and ambitions for Rabbie's as we emerge from Covid.
"Piper's passion for brand, purpose and culture is a perfect match for the Rabbie's team, and we look forward to making the world a better place through travel together."
Dan Stern, Piper’s partner who led the deal, said: "Although the travel industry has been badly hit by Covid, our consumer insight work shows that people are more eager than ever to see new countries and experience new cultures.
"As a brand unrivalled in its satisfaction levels among customers, Rabbie’s is exceptionally placed to benefit from this pent-up demand as we emerge from the pandemic."
Kimber added: "Robin, Hazel, Heather, Alec and the team have built a great business with an incredibly strong brand and culture.
"I’m really excited about the opportunity to work with Piper who have a proven pedigree in growing brands while keeping the founding values of businesses at their heart."
Dane Houlahan and Tim Evans provided corporate finance advice to Rabbie’s on the transaction.
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