£103m deal sees co-founder exit holiday park group
Investors and the management team at York-based holiday group Park Leisure 2000 have bought out the co-founder, who founded the business in his back bedroom, in a deal worth £103m.
Midlothian Capital Partners have agreed with a group of investors as well as co-founder Miles Dewhurst and his management team are acquiring the business.
Chief executive and co-founder Gary Molloy will exit from the business at completion to “pursue other avenues.”
Dewhurst will take over as CEO and will be supported by the existing management team as well as MCP.
The company is headquartered at York Business Park and in its latest results, to December 2015, turnover over £57.8m, with pre-tax profits of £5.8m. It employs around 300 staff.
Andrew Bracey of MCP and chairman-designate of Park Leisure, said: “We have looked at a number of opportunities in the holiday park sector and we consider Park Leisure to be the outstanding operator in the space.
!The parks and teams in place are of the highest quality and we look forward to providing long-term support to Miles and his management team to grow Park Leisure further. The business has an unparalleled reputation for giving its customers a luxury, five-star experience and there is an exciting opportunity for future growth of the business across the UK.
“We are delighted to have been selected by Gary and Miles to invest in Park Leisure for the future. It has been a pleasure dealing with the management team and we wish Gary every success going forward.”
Gary Molloy, CEO and co-founder of Park Leisure, said: “After 19 dedicated years I have decided to take a back seat and exit the business over this coming season. The company started from an office in a bedroom in my house and has steadily grown ever since.
“As I leave I’m delighted to know that Park Leisure will not only be in the safe hands of Miles and his team, but will have the stewardship of MCP who clearly know this sector very well. I have very much enjoyed working with Andrew and the MCP team, and wish them, as well as Miles and the Park Leisure team the very best for the future.”
Miles Dewhurst, CEO-designate of Park Leisure, said:”As we turn the page on a new chapter with Park Leisure, I’m excited for the opportunity ahead and know that we have the right partners in MCP to deliver a great future for the business.
“They are providing the capital investment to secure the long-term growth and future of Park Leisure and are committed to further investing in the development of our parks and continuing to further our service and standards.
“They embrace our principals of ‘excellence as standard’ and we are all thrilled to be working together.”
Advisers to MCP included Rothschild, Slaughter and May, EY and Savills.
The Dow Schofield Watts Corporate Finance team which advised the Park Leisure team on the transaction was led by Roger Esler and Tony Norwood. The Squire Patton Boggs legal team was led by Hannah Kendrick and consisted of Giles Chesher, David Chan and Craig Pettit.
Esler commented: “Park Leisure 2000 has been one of Yorkshire’s great success stories. To date it has evolved and grown without access to external equity capital. With the financial muscle and deep sector knowledge that MCP brings, this next stage of growth will be exciting to watch.”
