On The Beach will acquire the issued share capital of Sunshine.co.uk for a total consideration of £12 million.
 
The consideration will be funded from the group’s existing cash resources and bank facilities in the form of an extension to the group’s “existing working capital revolving credit facility”.

 The consideration will be split with 75% paid on completion and the remaining 25% in December.

Sunshine.co.uk reported gross assets of £18.6 million and Ebitda of £1.6 million in its latest statutory audited accounts for the 13th month period to September 30.

On The Beach Group described Sunshine.co.uk as “highly complementary” to On the Beach and the transaction will add about 200,000 customers to the 1.2 million customers currently travelling with On the Beach.

“The additional passenger volumes will significantly enhance On The Beach’s opportunity to drive an increasing proportion of business into exclusively contracted product and an ability to leverage incremental margin”, it said in a statement.

Simon Cooper, chief executive of On the Beach Group, said: “We are delighted to have acquired a brand as well-established with beach holidaymakers as Sunshine.co.uk.

“This earnings-enhancing transaction reflects the board’s ambition to consolidate On The Beach’s leading position in the online beach holiday space while supporting our drive to exclusivity and underpinning our ability to further leverage our scale.”