Electra and Alchemy merge holiday park operators

The merger results in a company with turnover of £370m, EBITDA of £100m and an enterprise value of £960m. It operates 73 holiday parks and serve 1.8 million customers.

Both GPs will hold a stake in the company. Electra will own an equity interest of 45% in the combined group, representing £196m of shareholder loan notes, alongside the management team and other shareholders.

Electra reaped £95m in the transaction, bringing total cash proceeds up to £109m, representing 82% of its original investment. 

Debt
A new £550m debt facility, arranged by Barclays, RBS and JP Morgan, refinanced existing debt facilities.

Previous funding
Electra first invested in Park Resorts in January 2012 in a £45.5m debt-for-equity transaction, which saw it acquire term debt from Lloyds. Later that year, it acquired two further debt packages, bringing its investment in the company to £69.8m.

In May 2015, Electra acquired a further stake in Park Resorts from GI Partners for £25m.

Alchemy took part in the management buyout of Parkdean Holidays in May 2006. The £230m take-private deal gave Alchemy an 80% equity stake, with management owning the remainder.

Companies
Founded in 2001 and headquartered in Hemel Hempstead, Park Resorts is a holiday park operator. In 2014, the business generated revenues of £230m and profits of £58m – up 7.5% and 28% year-on-year, respectively. Park Resorts has a headcount of around 3,500 and operates 49 coastal sites.

Parkdean owns and runs 24 self-catering holiday parks across Scotland, Wales, south-west England and East Anglia. The company was founded in 1999 and operates from headquarters in Newcastle.

The newly-combined group operates 73 holiday parks throughout the UK, generating EBITDA of £100m. 

People
Alex Fortescue is chief investment partner at Electra. Alan Parker is chairman of Park Resorts.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Consumer
• Buyouts
• Secondary buyout
• United Kingdom