Coach companies set for £200m merger

Two of the biggest names in the British coach tour business announced plans today to join forces in a deal worth £200m (€288.7m).

Coach Holiday Group (CHG), which owns Wallace Arnold, and Shearings are to merge to form one of Europe’s largest coach holiday companies, CHG shareholder 3i said.

The merger will create a company with a combined annual passenger count of nearly one million, a database of more than 2.5 million people and more than 3,400 staff, 3i said.

The deal remains subject to approval by the British Office of Fair Trading. If it gets the go-ahead, 3i will have a 67.8% stake in the new group and management will hold 32.2%, of which a proportion is intended for an employee share option scheme.

Shearings’ managing director John Slatcher described the proposed deal as a “transforming step” for both companies.

“The combination of the two businesses, with their strong brand awareness and discerning customer base, will significantly enhance our holiday offering,” he said.