Electra Private Equity Closes Park Resorts Merger, Refinancing.
16 November 2015 - UK-based private equity fund manager Electra Private Equity Plc has completed the merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays in a transaction that gives the enlarged company an enterprise value of GBP 960m, the firm said.
Electra has received cash proceeds of GBP 95m, which takes total cash proceeds received by Electra to GBP 109m (USD 165.99m) or 82% of original investment cost.
The firm now holds shareholder loan notes valued at GBP 196m and an equity interest of 45% in the combined group alongside the management team and other shareholders.
Electra originally invested in Park Resorts in 2012, buying the company's senior debt at a substantial discount with a view to leading a debt restructuring.
The firm achieved this restructuring in August 2013, thereby taking a substantial equity interest in Park Resorts and creating a stable platform for investment-led growth.
Following this, Electra Partners led the acquisition of two further park businesses which are now being combined into the enlarged group.
The combination of operational improvement and investment-led growth resulted in profits across Electra's caravan park businesses growing by 28%, on revenues which rose by 8%, in 2014. This strong performance has continued into the current financial year.
This merger combines two complementary portfolios of holiday parks to create a nationwide operator with 73 sites and EBITDA of over GBP 100m.
Alex Fortescue, Sarah Williams and Tom Stenhouse are responsible for the investment in Park Resorts Group. Alex and Sarah will represent Electra Partners on the board of the new company.
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market. During the last 25 years it has invested in excess of GBP 4.5bn in over 200 deals.
As at 30 September 2015, the firm had funds under management of over GBP 1.8bn including capital available for investment of nearly GBP 350m.
Target: Park Resorts, South Lakeland Parks and Southview and Manor Park with Parkdean Holidays
Buyer: Electra Private Equity Plc
Deal size in USD: 165.99
Buyer advisor: , ,
Comment: Merger of acquired units
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|Publication:||M & A Navigator|
|Date:||Nov 16, 2015|
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