All Leisure group PLC announces acquisition of Page & Moy Travel Group Limited

All Leisure group PLC ("All Leisure", the "Company" or the "Group") is pleased to announce that it has reached an agreement with the shareholders of Page & Moy Travel Group Limited ("Page & Moy Travel Group") to acquire, on a debt free basis, 100% of the share capital of Page & Moy Travel Group (the "Acquisition"). The consideration will be a total of £4.2 million, before deduction of Page & Moy Travel Group's transaction costs, payable in cash (the "Acquisition"). The consideration will be funded with a £5.8 million loan (the "Loan") from a consortium of individual investors (the "Consortium").

Summary information on the Acquisition

Page & Moy Travel Group, a leading tour operator offering holidays to a wide range of overseas destinations, has been offering a broad range of holidays, including touring holidays, city breaks, river and ocean cruises, safaris and classic rail journeys to the over-55s for more than 50 years. It currently trades under 3 brands, Travelsphere, Page & Moy and Just You, selling predominantly directly to its passengers from its dedicated call centre in Market Harborough. In the year to 30 November 2011 the group carried c. 88,000 passengers across its three brands.

Background to and reasons for the Acquisition

All Leisure has a consistent strategy which is to achieve growth by exploiting the increasing demand for destination-led cruise holidays and by providing an increasing choice of other niche holiday products into the over-55 English speaking market. The Directors believe that the Group's chosen niche markets have a number of fundamental attractions:

• Significant barriers to entry. The Directors believe that a growing focus by regulators on safety and consumer protection is raising the barriers to entry for those wishing to enter the Group's markets. This is benefiting established brands with strong balance sheets.
• High levels of repeat business. The Group enjoys significant repeat passenger business, underlining the benefits of customer loyalty.

In realising this strategy, organic growth opportunities will be complemented by strategic acquisitions, reinforcing existing positions as well as increasing All Leisure's exposure to new and attractive markets.

Rationale for the Acquisition

The Board believes that the acquisition of Page & Moy Travel Group is wholly aligned with this strategy and has excellent commercial rationale, as it both reinforces the Group's existing positions, offering holidays to customers in the same age profile, and increases All Leisure's exposure to new markets.  The advantages of this transaction include, but are not limited to:

• Page & Moy Travel Group has a large UK customer database which is compatible with All Leisure's. The enlarged group will have access to a list of nearly 4 million households (mainly 55 and over) and this is expected to lower the cost of customer acquisition
• Opportunities for greater cross selling across brands, particularly to fill All Leisure's expanded cruise programme
• Reducing dependency on the cruise market, and introducing  more balanced global destinations such as China and North America
• Providing numerous synergies across the two businesses
• Strong use of scheduled flights will reduce transport costs for fly cruises
• Majority of enlarged business will be direct and with both All Leisure and Page & Moy Travel Group having high level of repeat business.
• Significant trading losses historically which should result in future corporation tax savings.