South Lakeland Parks acquired in £47m deal
NORTH West holiday parks operator South Lakeland Parks has been acquired by private equity firm Electra Partners in a £47m deal.
Founded in 1988, Kendal-based South Lakeland owns and operates nine holiday parks in the English Lake District and Morecambe Bay area, including two parks bordering Lake Windermere.
The deal represents a significant discount to the £125m price paid by vendor White Ocean Leisure in 2007. White Ocean’s largest shareholder is Gary Landesberg who ran the highly leveraged pub company Admiral Taverns.
Electra, which said it acquired the business from White Ocean and its lenders, will invest £22m and Investec Growth & Acquisition Finance has provided the integrated debt facility.
The acquisition has been made in partnership with Electra’s existing portfolio company, Park Resorts, which will manage South Lakeland’s parks under a management contract.
Electra said that together the two businesses create the largest holiday parks operator in the UK with 48 properties across England, Scotland and Wales.
Alex Fortescue, chief investment partner at Electra Partners, said: “Having completed the refinancing of Park Resorts in July, we are now backing its industry-leading team to consolidate what is both a fragmented and resilient sector. We have been interested in South Lakeland for some time due to its high-quality estate which fits well with Park Resorts’ existing portfolio.
“This transaction, the latest step in our investment in the holiday parks sector, further illustrates the flexibility of our investment strategy and its suitability to current market conditions. Starting from an initial position in Park Resorts’ debt, we now have a controlling position in the largest player in the holiday parks market.”
A PwC team, led by North West head of deals, Christine Adshead and David Trunkfield in Manchester provided financial, commercial and tax due diligence services on the deal. Electra was advised by property agent Colliers International.
