3i backed Travelex in £1bn transaction

Chairman and Chief executive of Travelex Lloyd Dorfman and 3i have today announced an agreement for funds advised by Apax Partners to acquire a majority shareholding in Travelex, the world's largest foreign exchange specialist, in a cash transaction valuing the company at £1,055m.

Lloyd Dorfman, who will continue to be Chairman and Chief Executive of the Group, will retain a 30% stake, and 3i and funds managed by 3i which has held a shareholding in Travelex since 1998, will retain a 7% stake.

Travelex announced on 19 December, 2004 that it had appointed Deutsche Bank to review the strategic options for the business, following a number of approaches received from potential acquirers. The Board concluded that the new ownership structure announced today best meets those strategic objectives.

Travelex is the world''s largest foreign exchange specialist and is a global brand.  The Travelex Group has offices in 35 countries and corporate relationships in 110 countries, and serves over 29 million customers each year.

Lloyd Dorfman, Chairman and Chief Executive of Travelex, said:
"We are delighted with today''s announcement. I believe that the combination of Travelex and Apax will represent a powerful force in the marketplace, and help us to achieve the ambitious goals we have set for the business."

Nick Badman 3i Director commented:
 "Travelex has been a great success story and a fabulous investment for 3i. 3i works in partnership with strong management teams to create value and Travelex is a great example of this. We are delighted also that we will be able to continue work with Travelex, Lloyd and Apax to create further value."

Commenting on the transaction Jonathan Russell Head of 3i''s Buy out business said
"Travelex has had all the ingredients of a terrific investment. A superb management team an excellent market opportunity and an investor, 3i, who could add a lot of value. This transaction realises a significant gain for 3i and for the investors in our buy out funds."
 
Stephen Green, Partner who heads Apax Partners'' Business and Financial Services team, said: "We are delighted to enter into partnership with Lloyd Dorfman at this exciting time for Travelex. Apax Partners is committed to supporting the global growth of Travelex''s corporate and consumer payment businesses."
 
The transaction is expected to close in July 2005.