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Onex to Buy British #1 RV Camp Operator Parkdean Resorts from Electra, Alchemy for £1.35B

Onex to Buy British #1 RV Camp Operator Parkdean Resorts from Electra, Alchemy for £1.35B

Caledonia Investments plc (LSE: CLDN) said it agreed to sell Park Holidays UK, the third largest holiday park operator in the UK, to private equity and asset management specialist Intermediate Capital Group plc (ICG) (LSE: ICP), for £362 million ($450 million). As reported in August by ExitHub, Electra and Alchemy were said to have hired Rothschild to explore the sale of Parkdean Resorts, which became Britain’s biggest holiday home park operator, with 73 sites across England, Scotland and Wales, selling more than 500,000 holidays and short breaks a year, after last year’s merger of Electra’s Park Resorts with Alchemy’s Parkdean Holidays. Parkdean Resorts offers a wide range of accommodation, from caravans and camping pitches to chalets, apartments and lodges. The company employs over 6,000 staff during the peak holiday season and is headquartered in Hemel Hempstead and Newcastle, UK. “Parkdean Resorts has built the market-leading affordable holiday park business in the UK, with a strong base of loyal customers in an attractive segment of the domestic holiday market,” said Tony Morgan, a Managing Director with Onex. “We are excited to partner with John Waterworth and his team to continue to support the company’s growth, both organically and through acquisition.” “This is an exciting opportunity for Parkdean Resorts,” said John Waterworth, Parkdean Resorts’ Chief Executive Officer. “We look forward to working with Onex to further enhance our parks and leisure facilities during our next phase of growth.” “There has been a trend for shorter breaks that has been going on for the last 25 years,” he commented further. “A foreign holiday does not appeal to everybody – some people want a short break where substantial travel is not involved. What we have seen is growth in the popularity of UK short breaks from the domestic market. It has been building very gradually and it continues to build.” A trend for taking shorter breaks instead of longer holidays lengthened the holiday season and boosted Parkdean Resorts’ performance, with the company selling 492,000 holidays in 2015, it said. Onex Partners IV and Onex have committed to make an equity investment of approximately $750 million. Onex is one of the oldest and most successful private equity firms. The firm has approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests alongside its fund investors and is the largest limited partner in each of its private equity funds. Parkdean Resorts has seen bookings rise 11 percent after it invested millions on upgrading its sites. The company reportedly invested £36 million in 2015 and is said to be channeling a further £40 million into the business this year, according to the Daily Mail. It is bringing in 400 new and upgraded caravans and lodges, offering double glazing and central heating. The company’s revenues jumped from £371 million in 2014 to £401 million last year, while underlying earnings increased by 16pc to £106.6 million, The Telegraph said. Parkdean Resorts acquired the five-star Vauxhall Holiday Park resort in Great Yarmouth, in its first acquisition since last year’s merger. Vauxhall comprises 390 caravans and lodges, 48 apartments and 180 touring and camping pitches across 41 acres. Electra Private Equity PLC is a London Stock Exchange listed investment trust focused on buyouts and co-investments, secondaries, debt investments, listed securities and funds. The firm was formed in 1935 as Cables Investment Trust Limited by Cable & Wireless and Globe Investment Trust, and renamed as Electra in 1975. At March 31, 2016, Electra’s investment portfolio was valued at £1.7 billion. Alchemy specializes in investing in distressed and undervalued or underperforming businesses and other special situations through debt and equity across Europe. The firm currently has over £1.5 billion of assets under management.]]>