Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Share-out for Saga workers after £1.35bn sale

Graeme Evans,City Editor,Pa News
Sunday 03 October 2004 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Saga staff were poised for a major windfall today after the holidays-to-financial services group was sold in a £1.35 billion management buy-out.

Saga staff were poised for a major windfall today after the holidays-to-financial services group was sold in a £1.35 billion management buy-out.

The bonus, which will see workers receive £1,000 for every year of service, comes after chairman Roger De Haan agreed to share some of the sale proceeds.

Staff will also become shareholders in the company, which was sold to the existing management team and private equity group Charterhouse.

Today's move ends a long-running process which saw Saga toy with the idea of a stock market flotation.

Mr De Haan, whose family will pick up the bulk of the proceeds, said it was a "close-run decision" to choose a sale, but added that the management buy-out represented the best interests of shareholders, employees and customers.

Saga, which was taken private in 1991, employs about 2,500 people and earlier this year announced annual turnover of £382.7 million and profits of £81.6 million.

As well as a leading magazine, it has a database of eight million current and potential customers and near-universal brand awareness among its target market.

Sidney De Haan set up the Folkestone-based business from a hotel in 1951.

The executive management team of Saga will be unchanged following the deal, with chief executive Andrew Goodsell remaining in that position. The stakes of Charterhouse and the management in the new company have not been disclosed.

Mr Goodsell pointed out that the new ownership structure ensured continuity of service for customers.

He added: "For staff it will provide a shareholding in the company and confidence in the continuing integrity of the business."

The enterprise value of the deal has been put at £1.35 billion, although the level of debt included in the figure has not been announced.

As well as current staff, company pensioners will also be entitled to receive a portion of the sale proceeds from Mr De Haan.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in