Travelex eyes another sale

Elizabeth Fournier
FOREIGN exchange company Travelex is poised to appoint bankers to advise on the sale of its global business services, as it builds up cash reserves to expand its currency services in global markets.

Travelex’s global business services operation is currently the largest non-bank provider of foreign exchange services to businesses and financial institutions.

A source close to the company said that talks with banks and advisers were ongoing following strong financial results last month, and that although no banks had been officially hired yet an appointment is likely to be made “very shortly”.

Chief executive Peter Jackson said in late March that the company was looking to use cash reserves from disposals – including the $459m (£285m) sale of its prepaid currency card unit to MasterCard last year – to fund expansion of its currency services in markets across Asia and South America.

The company added 139 new stores in 2010, expanding the brand to 950 stores across 24 countries. It also acquired a minority stake in South African peer FX Africa last year,

Travelex has been the subject of listing rumours since the middle of last year, after chairman Lloyd Dorfman admitted that its private equity majority owner Apax Group was looking at exit strategies.

The company released its second best-ever set of profits on 21 March, despite being hit by the Icelandic volcano and travel strikes last year.