Private equity specialist backs holiday park deal

MANCHESTER-base Palatine Private Equity has backed the secondary buyout of holiday park group Verdant Leisure.

Verdant currently operates four holiday parks based in Southern Scotland and North East England with more than 2,100 pitches, comprising of privately owned lodges and holiday homes, holiday lettings and touring facilities.

Established in September 2010 by a management team led by chief executive Graham Hodgson, Verdant has capitalised on the growing trend towards ‘staycations’ in the UK.

To date the team has acquired four parks comprising of Thurston Manor and Pease Bay in September 2010, Viewfield Manor in July 2011 and Riverside in January 2012.
 
Palatine has acquired a majority stake in the business and will work alongside the existing management team of Hodgson, operations director Bev Dixon and chief finance office Andrew Wall.  Ronnie Peters will join the board as sales director. The deal provides an exit for RJD Partners who backed the original buyout in 2010.

The investment from Palatine will support further development and organic growth across the existing parks as well as providing funding for further acquisitions.
 
Verdant is the second investment from Palatine’s £220m Fund III, which closed in June 2015.

Palatine partners Ed Fazakerley and Beth Houghton led the deal, along with Investment Director James Winterbottom and Investment executive James Painter. Fazakerley will join the Board as non-executive Director.

Fazakerley said: “The growing trend towards ‘staycations’ in the UK and the increased demand for holiday accommodation in premium locations means the business has enormous growth potential. We have been impressed by the expertise of the management team and look forward to developing a strong relationship as we seek to drive further expansion.”
 
Hodgson said: “We have made great strides in the holiday park sector with the support of our previous partners, RJD.

“Palatine’s impressive portfolio and proven track record of growing entrepreneurial businesses made them the ideal partner and their support will enable us to identify new acquisition targets as well as making improvements to our current locations. We are excited about the future of Verdant Leisure as we start  a new chapter with Palatine.”
 
Yorkshire Bank’s Specialist and Acquisition Finance team in Manchester provided debt finance to existing customer Verdant Leisure, led by Neil Macleod and Jane Hartley. Toscafund Asset Management’s (Toscafund) Tosca Debt Capital business provided second line funding led by Gary Davison and Richard Williams.
 
Owen Malton, regional head of Specialist and Acquisition Finance at Yorkshire Bank, said: “This new funding arrangement will see the strong management team continue its investment strategy and provide the company with the financial freedom and flexibility to explore growth and acquisition opportunities.

“The significance of this transaction for all parties should not be underestimated as it illustrates the willingness of the management team and Yorkshire Bank to work with an ambitious private equity house in Palatine, and a dynamic regional Debt Fund in Tosca Debt Capital, to support the growth aspirations of Verdant.”
 
Gary Davison, partner at Toscafund, said: “We’re delighted to have been able to support Palatine in the acquisition of this established, profitable and well-run business.  This is an excellent example of a high quality deal having been sourced, advised on and funded out of the North West region.”
 
Clearwater International, led by partners Michael Reeves and Mark Taylor, with support from associate director Tom Barnwell and associate Aidan Miller, advised on the deal.
 
Gateley led by Rebecca Grisewood, Kate Richards and Ric Sealy were Palatine’s legal advisers with management being advised by Osbourne Clarke (Mark Spinner).
 
A team from KPMG including Sue Richardson and Philippa Griffiths provided vendor financial due diligence with CIL providing commercial due diligence.

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