Electra cashes in as Park Resorts plans caravans tie-up

Coupling up: Park Resorts and Parkdean will have combined earnings of £100 million a year

Park Resorts

1 September 2015

Brits recovering from washout Bank Holiday trips to caravan parks will see a new name over the door if they venture back after Park Resorts revealed plans to merge with rival Parkdean to create a near-£1 billion company.

The merger is the largest transaction in the sector since Bourne Leisure acquired Rank Holidays 15 years ago and will be subject to Competition and Markets Authority approval.

The deal, which will create a combined group with 73 caravan parks, will also trigger a £96 million cash payout for Electra Private Equity, which invested in Park Resorts in 2012.

Park, chaired by former Whitbread boss Alan Parker, is the UK’s largest caravan parks operator.

Electra, which will continue to own 45% of the business, said the new group would have earnings of £100 million a year.

To finance the merger with Parkdean, which has been part-owned by rival private-equity company Alchemy Partners since 2006, Electra has agreed a £550 million debt facility with Barclays, RBS and JPMorgan. The cash payout arises from this refinancing.

Alex Fortescue, chief investment partner at Electra, said: “What started as an investment in Park Resorts’ senior debt has now become an equity position in a business of real scale and with strong growth prospects in the UK domestic holiday sector.”

Alchemy will continue to retain an equity stake in the enlarged group.

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Electra cashes in as Park Resorts plans caravans tie-up

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