Headline sponsor ual mergers and acquisitions-focused event. By Lee Hayhurst
Icelolly investor Palatine hails focus on ESG initiatives
Icelolly.com investor Palatine Private Equity says its specialism in firms that are good for the environment and society is paying off as greater value is placed on ethical investments. The Manchester-based private
equity firm has picked up a slew of awards for responsible investments and has created a separate fund for environmental, social and governance (ESG) initiatives. Through this fund it backs firms
that not only have positive social or environmental impacts but also drive financial returns. Partner Beth Houghton told
Beth Houghton
the breakfast: “We were an early adopter [of ESG]. We started to look at it 10 years ago. “It has generated better returns
and we have created more resilient and better businesses because we look at ESG and the market has moved towards us a bit now. “Moving forward it’s only going to get more interesting.”
BUSINESS NEWS Supported by
Host
Hotelplan targets sustainable, niche businesses for potential acquisition
Inghams parent Hotelplan will prioritise sustainable growth over high growth as it assesses potential acquisition targets. The Switzerland-based firm, a
co-operative owned by two million of the country’s 7.2 million population, says it cannot compete with the high valuations of private equity targets. Paul Carter, chief executive of
Hotelplan UK, said Hotelplan is interested in firms in niche travel areas, not the mass market. “We take a long-term view,” he said.
“We try to add value to businesses and incentivise management teams to operate independently.” Carter said the acquisition of
activity holiday specialist Inntravel Paul Carter
was a “great example”. Hotelplan has driven back-office, IT and HR synergies but Inntravel is still run by the same team 11 years later. Hotelplan’s most recent
acquisition was of former Tui and Travelopia tailor-made operator Flexiski in May.
Brexit and Cook divide opinion
Experts on the M&A business breakfast panel disagreed about the impact of Thomas Cook’s collapse and Brexit on deal-making in the travel sector. Former Traveltek boss Kenny
Picken played down the potential impact of Brexit, saying he expected it to be a “damp squib”. He said: “Brexit is getting the blame
for everything. It will have an initial impact, which we will recover from.” Picken said the demise of Thomas
Cook had opened up the market. “It’s opportunity knocks for
anyone who wants to pick up the mantel,” he added. Picken predicted that the
revamped easyJet Holidays – due to officially launch in time for the peaks period – will have a big impact. However, Hotelplan’s Paul Carter
said a high level of uncertainty remained around Brexit, and reduced short-term capacity would benefit
travelweekly.co.uk If anyone says it’s
going to be a brilliant winter, I do not know what they are looking at. It’s tough out there
the major players in terms of higher prices and yields. “I would not be too bullish on
this,” he warned. “It’s going to be a difficult winter. I think consumers are less confident. “If anyone says it’s going to be a
brilliant winter, I do not know what they are looking at. It’s tough out there.” Adam Hansen, of On the Beach,
said despite various forecasts for Brexit’s impact on GDP, it was difficult to figure out what impact it would have. “The country is clearly divided,
but business is united in just wanting this period of uncertainty ended sooner rather than later. We’re all quite fatigued talking about it. “Uncertainty leads to nervousness
and that can often be the difference between getting a deal over the line or not.” Beth Houghton, of Palatine
Panellists with moderator Ian Taylor
Private Equity, agreed. “Uncertainty is not good for financial institutions,” she said. “Deals have slowed down, particularly deals in consumer-facing sectors like restaurants.” Houghton said the weakened
pound was seeing more interest from overseas investors looking to pick up a bargain in the UK.
14 NOVEMBER 2019 79
PICTURES: Steve Dunlop
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