A Sussex holiday company has been taken over in a major deal.

Worthing-based Classic Collection Holidays has been bought for an undisclosed sum by a group of investors headed by entrepreneur Nick Munday, who is the new managing director.

Mr Munday is keeping future plans the company close to his chest but already given assurances to his staff business as usual.

The operation will continue to based in its Worthing offices where the current staff will be retained.

He said: "Expansion for summer 2003 is definite and we will need to recruit additional staff and invest in technology so growth won't be hampered.

"We plan to build on the Classic Collection touch ensuring new destinations and properties will match the quality expected by its clientele."

Classic Collection Holidays was started by Arthur Thomson in 1988.

Its brochures feature upmarket properties in Madeira, the Algarve, Mallorca and Tenerife plus three lesser-known Canary Islands, La Gomera, El Hierro and La Palma.

Flights are with scheduled airlines, often with business class upgrade options, and private taxi transfers.

Mr Munday began his tour operating career at Panorama Holidays in 1981 management accountant.

In 1987, he and then managing director, Justin Fleming, bought Panorama from its original founders, the Hayes family.

The two grew annual passenger numbers for Panorama from 20,000 to 170,000 a year in the following 11 years.

They sold Panorama to travel industry giant Airtours in 1998, by which time the company was the market leader for holidays to Tunisia and Morocco, the sixth largest overall UK tour operator and the fourth largest operator in Ireland.

Mr Munday and Mr Fleming stayed with Panorama after the purchase and successfully acquired and integrated Greek specialist Manos Holidays.

Mr Munday said: "I took over as managing director of Panorama and Manos in 2000 after Justin retired and, although I enjoyed the challenge, I was keen to take a career break.

Mr Munday, who now holds the majority shareholding in Classic Collection Holidays, said he was excited about heading up the small and successful tour operation.

He said: "The company has a lot of potential for growth and it won't be long before we start to take on additional staff."

The acquisition meant he had to get a team of investors together to buy the business and was delighted when his younger brother Philip said he was interested in investing.

While Mr Munday was at home in Sussex selling holidays, Philip travelled further afield, assisting the establishment and development of a reinsurance company in Bermuda.

The company was sold in 1998 and Philip returned to the UK.

He took his yachtmaster's qualification in 1999 while setting up Great Escapes Yacht Charters, a luxury, crewed yacht charter company specialising in corporate hospitality in the UK and holidays in the Caribbean.

Mr Munday said: "It has been brilliant. Philip has been so supportive both financially and with business advice.

"My whole family has been fantastic, especially over the past few weeks."