PGL Travel Ltd, the UK's market-leading activity holiday specialist and school tour operator, has been acquired by its management from the family of its founder, Peter Gordon Lawrence, in a deal valued at £42m.

Based in Ross-on-Wye, near Monmouth, PGL was founded in 1957, initially providing canoe camping trips for groups of teenagers on the River Wye.

It currently takes more than 250,000 children a year on school trips and activity holidays, operating centres throughout the UK, France, Spain and Austria.

Chief executive Martin Davies said the board was delighted at having secured the company. "It's taken months of negotiation to reach agreement, but we are very pleased to have the opportunity to move forward now on the firm foundations established by the company over nearly 50 years of operation," said Davies. "Peter Lawrence would have been very pleased with the outcome which keeps the company he developed intact, its culture, values and guidelines unaltered, and his loyal staff in post."

Known affectionately as Parents Get Lost, PGL is recognised by all the major activity organisations, including the Royal Yachting Association and the British Canoe Union, and is licensed by the Adventure Activities Licensing Authority. It is a founder member of the British Activity Holiday Association.

Mr Davies, who was appointed by Peter Lawrence to take the company through to its next phase, said: "When Peter died in August 2004, a management buyout was the obvious route forward."

The buyout team also comprises finance director Peter Churchus, commercial director John Firth, operations director Ian Officer, corporate affairs director Martin Hudson and company secretary and director Linda Woolf.

Davies said: "Peter Lawrence's contribution to outdoor recreation and education has been immense. Several generations of children have benefited enormously from his achievements. Thousands of young people have entered careers in outdoor education, childcare and other professions through employment at his centres. "However, under our management, the solid foundations that he laid leave a platform from which PGL will continue to prosper and offer countless more opportunities for fun, adventure and personal development."

The buy-out team was advised by the South West and Wales Corporate Finance team at Grant Thornton, headed by partner Paul Oldham, alongside solicitors Gateley Wareing, Birmingham, headed by Partner Simon Gill.

Funding was provided by Royal Bank of Scotland.