CBPE acquires ABI in secondary buyout from LGV

Kenny Wastell
20 May 2016

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CBPE Capital has acquired a majority stake in UK caravan holiday homes manufacturer ABI from LGV Capital.

ABI's existing management team has acquired a minority stake in the business as part of the transaction, while CBPE's Tom Biddle and Mathew Hutchinson will take a seat on the board.

The deal marks the first investment from CBPE Capital Fund IX.

It is understood CBPE will consider the possibility of supporting bolt-on acquisitions for ABI. However, the GP foresees significant organic growth opportunities, in particular the growing trend of British holidaymakers remaining in the country, along with the demographic growth within the UK's over-55 age group.

In March 2013, LGV announced it would no longer make new investments and instead focus on managing and divesting its portfolio. Since then, several of LGV's team have left the GP; most notably managing director Bill Priestley, who joined Electra Private Equity as a partner in January 2014.

CBPE has a track record of investing in the holiday parks market. In February 2008, it invested in Away Resorts to support the acquisition of the Whitecliff Bay site on the Isle of Wight. The GP exited the company in April 2015 via an SBO to LDC.

Previous funding
LGV secured a majority stake in ABI via a management buyout from Barclays Ventures in November 2011, a deal that valued the business at between £25-75m.

Company
Headquartered in Beverley, Yorkshire, ABI manufactures caravan holiday homes, with a focus on the UK holiday parks market. The business has a headcount of 400, up from 300 at the time LGV first invested.

People
CBPE – Tim Biddle (director); Mathew Hutchinson (partner); Naveen Passi (investment director); Ben Lewis (investment manager).
ABI – Mel Copper (chief executive).
LGV – Michael Mowlem (managing director).

Advisers
Company – Livingstone, Graham Carberry (M&A).