Great Rail Journeys acquired by Vitruvian Partners

The private equity firm has backed several travel technology deals previously

Rail specialist tour operator Great Rail Journeys has been acquired by private equity firm Vitruvian Partners for an undisclosed sum.

The acquisition will see the departure of previous investors Duke Street, with the current management team continuing under chief executive Dave Riley.

The deal adds to Vitruvian’s travel portfolio which also includes investments in Travel Counsellors, Sykes Cottages, Civitatis, Klook and OAG. It also previously held investments in Skyscanner and JacTravel.

Great Rail Journeys was founded in York in 1973 as a family-run business focused on rail tours for UK travellers in the UK and Europe, and now offers more than 400 itineraries around the world.

Its total transaction values (TTV) have grown from £88 million in 2018 to about £175m in the current financial year, based on growth of its product portfolio including a move into river cruise and touring, and expansion into the US market.

Riley said: “I would like to thank the Duke Street team for their support over the last seven years. The business has transformed in that time becoming the leading multi-source travel business in our sector. 

“We’ve tripled the size of our US business, achieved market leading growth in the UK, and grown beyond rail with the addition of our European river cruises and wider land touring programme.

“For 50 years, we’ve set the standard in escorted tours for both new and returning customers and I am excited about the next chapter of our journey. I look forward to working with Vitruvian to deliver on our growth ambitions.”

Duke Street partner Jason Lawford added: “Great Rail Journeys has been a highly successful investment for Duke Street. Under our ownership, we have supported the business to unlock its full potential through several growth initiatives.

“Together with an exceptional management team, we have implemented a digital transformation programme, expanded the business to the US through a strategic acquisition, diversified into the river cruise and luxury travel markets, and consolidated the brand portfolio.

“Profits have since doubled, and the business’s bottom line continues to accelerate. We wish the new owners and the management team behind this well-loved travel brand the very best for the future.”

Ben Johnson, partner at Vitruvian Partners, said: “We are excited to partner with Dave and his team and share their ambition for the company to become the global market leader in escorted travel, catering in particular for those at a stage in life with time to enjoy discovering magical destinations by rail and river.

“We recognise in Great Rail Journeys a business with many growth avenues and a very attractive demographic to continue to serve. We look forward to working with the team in the years ahead.”

Duke Street was advised by DLA Piper, Harris Williams and Seven Dials City.

Vitruvian Partners was advised by Clearwater. Mayer Brown provided legal advice, alongside due diligence support from FTI Consulting, CG Consultancy and Palladium.