One of Wales' leading firms Zip World sold in a £100m deal

Adventure giant Zip World has been sold in a £100m plus deal that paves the way for further expansion. It has become majority-owned by Oxfordshire-based equity investor Dolphin Capital.

The deal provides a profitable exit for LDC, which took a significant minority stake following a multi-million-pound equity investment in the business back in 2018. Since then it has increased turnover by 95% and grown headcount by 200%.

Llanrwst-based Zip World was founded in 2013 by former Royal Marine Commando Sean Taylor, who retains a minority stake following the acquisition.

It now has eight sites across Wales and England, with adventures including the world’s fastest zip line, Velocity, and a variety of other zips, climbs, drops, and coasters across its locations.

Last year an independent report from North Wales Tourism revealed it contributed £941m to the Welsh economy over the last decade.

Andrew Hudson, chief executive of Zip World, said: “The leisure and hospitality sector has had its challenges over the past year, so I’m incredibly proud of everything we’ve achieved and that we’re able to continue growing and building on this.

"As LDC concludes their successful investment journey with us, we want to thank them for their support over the years which has allowed us to stay resilient and achieve so many of our goals despite the significant disruption caused by the Covid-19 pandemic.

"We’re incredibly excited to welcome Dolphin Capital as our new partner not least because they share the same enthusiasm as we do. Their investment not only validates our vision and strategy, but also provides us with the resources and support to really kickstart our latest growth plans. This is just the beginning of what we hope will be a big year.

“Investment is key for us, not only in our new sites but also in adding value to our existing locations. We’re thrilled to be opening in London and expanding our offering to communities across the UK, but North Wales remains at the heart of our company – it’s where it all started and it’s why we are continuing to reinvest in more adventures for the area.”

The transaction was led by Dewi Hughes, Rob Schofield and Vera Kuehne at LDC.

Mr Hughes, partner and head of south west and Wales at LDC, said: “Zip World is a progressive, dynamic and ambitious business in the UK adventure space. It has achieved strong growth during our partnership thanks to the vision, tenacity and strength of its first-class management team, who have navigated opportunities and market challenges with relish.

"We’ve had the privilege of supporting this important Welsh business on its journey from our Welsh office and wish the team and Dolphin Capital the very best for what will no doubt continue to be an exciting story.”

Dolphin Capital, set up in 2023 by Richard Cook and Kit Tuke, has a portfolio that includes the likes of Snowcentres, Techmet and Dynisma in its portfolio.

Mr Cook, partner of Dolphin Capital, said: "We are delighted to support Zip World in their continued growth, and our investment reflects our confidence in the team’s operational ability, their expansion plans and the positive impact they make to the adventure tourism sector in the UK.

"We look forward to investing in the existing sites and opening more Zip Worlds in the coming years."

LDC and Zip World were advised by KPMG (corporate finance), Blake Morgan (legal), Grant Thornton (tax) and Sedulo (tax), with ongoing support from HSBC Leveraged Finance Manchester.

Dolphin Capital was advised by Katz Advisers (corporate finance), Fladgate (legal) and BDO (financial & tax due diligence) and KPMG (tax).