In February 2005, 3i and Lloyd Dorfman reached conditional agreement with Apax in a deal to purchase Travelex in a £1 billion transaction. Completion of the deal is scheduled for the summer of 2005 and 3i is forecast to achieve a total money multiple of over 10 times its original investment. 3i will retain a 7% stake upon completion.
3i backed the buyout of Travelex in December 1998, having been introduced to Lloyd Dorfman, who founded the business in 1976, by the then Deputy Chairman of 3i. Under Lloyd Dorfman's leadership, Travelex has become the world's largest foreign exchange specialist employing around 6,000 staff in 35 countries, carrying out approximately 30 million transactions a year and serving 17,000 corporate and financial institution customers.
Following strong initial performance, 3i worked with the company to launch a high yield bond in August 2000, enabling early repayment of £23 million of loans to 3i and leaving 3i with a 33% shareholding for a cost of £200,000.
3i has supported Travelex through several key strategic moves, using its reputation in the City of London and financial expertise.
These key strategic events included the acquisitions of Transpay from Barclays and Thomas Cook Global & Financial Services, a business three times the size of Travelex.
