LDC invests £18.5m after secondary buyout of holiday firm
MID-MARKET private equity investor, LDC, has agreed to support the secondary buyout of a leading holiday park owner in a major investment deal led out of Birmingham.
The deal sees operator Away Resorts split from CBPE Capital for an undisclosed price. The transaction is subject to regulatory approval.
LDC plans to invest £18.5m in the Away Resorts team to support the delivery of the company’s organic growth plan, which centres on capitalising on the buoyant market for ‘staycations’ in the UK and providing capital to support further high quality acquisitions to complement the current Away Resorts portfolio.
Founded in 2008 by managing director Carl Castledine, along with Neill Ryder (finance director) and Greg Lashley (operations director), Away Resorts is based in Hemel Hempstead and operates sites in – Whitecliff Bay (Isle of Wight), Mill Rythe (Hampshire), Tattershall Lakes (Lincolnshire) and Barmouth Bay (Snowdonia National Park).
The business has successfully grown sales to more than £22m, positioning the business with a solid foundation for growth.
The business will significantly invest in its parks, creating additional capacity by developing existing planning permissions and upgrading accommodation, as well as continuing to improve its central facilities, such as swimming pools, gyms, spas, bars and restaurants and water sports.
The deal was led by LDC investment directors Richard Whitwell and Ben Snow, who will join the Away Resorts board. Gary Fletcher also joins the business as non-executive chairman, alongside Mike Smith as non-executive director.
Martin Draper, chief executive at LDC, said: “We are delighted to have successfully completed the deal to support Carl and the team in their next phase of growth, building on Away Resort’s success to date.
“We are investing in a unique and well-operated business and a strong management team that has the capabilities to deliver growth through organic expansion and further market consolidation, in what is an attractive and fragmented sector.”
LDC was supported by regional advisors Freeths and PwC. Clearwater International and Wragge Lawrence Graham & Co advised CBPE and Squire Patton Boggs advised Away Resorts on the deal. The transaction is being supported by debt facilities from the Acquisition Finance team at Lloyds Bank Commercial Banking.
LDC has considerable investment expertise in the leisure sector, having also invested in rural holiday accommodation specialist Forest Holidays, travel software Group ATCORE (formerly Anite) and travel and hotel bookings Management firm, CTI.
Earlier this year it also invested £307m in the MBO deal of the NEC Group.
