Limerston Capital buys Largo Leisure in first Fund II deal

Wahida Ahmed
23 March 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

UK mid-market sponsor Limerston Capital has acquired Scotland-based luxury rental accommodation provider Largo Leisure in a deal that marks the first platform investment from its second fund.

Limerston said in a press release that it intends to make the further acquisitions for the new portfolio company with a focus on individual or groups of smaller holiday parks across the UK. It will seek to strengthen Largo Leisure's offer through targeted investment and operational support.

Limerston Capital partners II held a first close on an undisclosed amount with the transaction. Its predecessor, Limerston Capital partners I, held a final close surpassing its GBP 200m target. The vehicle makes majority investments in UK-based companies with EBITDA in the range of GBP 5m-15m and bolt-ons with GBP 1m-2m EBITDA, according to Unquote Data.

The sponsor also appointed Andrew Howe as the company's executive chairman. Howe founded and led UK-based holiday park operator Bridge Leisure, which he exited in 2021. He brings with him sector experience and will focus on improving smaller parks, according to the press release. Howe will work alongside the company's current senior team, which includes managing director Jonathan Morley. Together, they will identify new growth opportunities which include potential expansion of sites, brand development, and investments into the parks' existing properties.

João Rosa, founding partner at Limerston Capital Company, said in a statement that the UK's domestic holiday market has continued to grow as a result of several factors and they expect this trend to continue as the cost of foreign travel rises.

Company
Largo Leisure is headquartered in Scotland and was founded by Rupert Barret in 2003. It offers a range of accommodation including wooden cabins, cottages, self-catering glamping facilities, deluxe beach huts, premium lodges, and caravans. The company has four holiday parks including in Fife and the Highlands.

People
Largo Leisure – Andrew Howe (executive chairman), Jonathan Morley (managing director).
Limerston Capital - João Rosa (founding partner).

Advisers
Equity - Addleshaw Goddard (legal); KPMG (financial due diligence); CIL (commercial due diligence).