Travelex Potential Sale Under Consideration

Published 8 months ago

Owners of Travelex, the British currency exchange, are reportedly considering a sale of the business. The company had fallen into administration in 2020. After strengthening its financial position, the owners, including former bondholders who took control through a debt restructuring, are weighing the interest of potential buyers, according to anonymous sources.

Exploring Interest with Advisers

The owners are presently working with advisers at Barclays and Smith Square Partners to assess potential buyer interest. An auction of the business could take place early next year. However, it’s important to note that these discussions are in the early stages, and there’s no guarantee that a sale will progress.

Travelex’s Major Investors

Travelex’s 2022 accounts reveal that Barings LLC is the company’s largest investor, holding a 52% stake. Other major investors include Corre Partners Management, Vector Capital Management, and Mariner Investment Group. None of these firms have publicly commented on the possible sale.

Turbulent Times for Travelex

Travelex, once part of the now-defunct Finablr, underwent significant struggles due to the coronavirus pandemic and a cyberattack, which led to a temporary disabling of its systems. The company was then put through a pre-pack administration, resulting in over 1,300 job losses and creditors seizing control.

Revenues Rebound with Travel Resumption

Despite the challenges, Travelex’s revenues have rebounded with the resumption of international travel as pandemic restrictions ease. Last year, the company generated sales of approximately 369 million pounds ($450 million) and a post-tax profit of 7 million pounds. Furthermore, Travelex recently announced a 90 million pound debt refinancing through a five-year senior term facility.