Blackstone to acquire Bourne Leisure

Katharine Hidalgo
01 February 2021

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Blackstone has agreed to acquire Bourne Leisure, the UK-based holiday resort company that owns Haven, Butlin's and Warner Leisure Hotels.

The deal could be valued at £3bn or 12x the company's £255m 2019 EBITDA figure, according to the Times and the Financial Times. Reports also noted interest in the asset during its sale process from Clayton Dubilier & Rice and US-based holiday parks operator Cove Communities.

Blackstone Capital Partners and Blackstone Real Estate Partners will acquire the company together, with the Harris, Cook and Allen founding families co-investing to retain a significant minority stake in the business.

Blackstone Capital Partners is currently deploying capital from its eighth-generation fund, which closed on $26bn in September 2019.

Blackstone owns several UK-based assets in the travel and leisure sectors, including Center Parcs and Merlin.

The company's management team is led by Paul Flaum, who will continue to lead the business following the transaction.

Previous funding
Candover and Legal & General Ventures backed the £1bn+ simultaneous acquisition of Bourne Leisure and Rank's Holiday Division in 2000. Rank's Holiday Division was acquired for a consideration of £700m, while Bourne had an undisclosed price tag believed to be in the region of £300m. The funding package roughly comprised a 70:30 debt to equity split, with new equity provided by Candover and LGV, and debt provided by Barclays Capital.

Company
The company employs 16,000 people across 56 sites in the UK. It operates through its three brands, Haven, Butlin's and Warner Leisure Hotels. Haven is a UK caravan operator with 38 holiday parks, while Butlin's and Warner Leisure operate hotels and resorts. The Hemel Hempstead-based company was founded in 2000.

People
Blackstone Capital Partners – Lionel Assant (head of private equity).

Advisers
Equity – Simpson Thacher & Bartlett (legal); Kirkland & Ellis (legal).
Company – PwC (corporate finance); Slaughter & May (legal); Ramboll (financial due diligence).