Electra Private Equity PLC ("Electra") is pleased to announce that, following regulatory approvals, it has completed the merger of its portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park (collectively referred to as the "Park Resorts Group") with Parkdean Holidays in a transaction that gives the enlarged company an enterprise value of £960 million.
Electra has received cash proceeds of £95 million, which takes total cash proceeds received by Electra to £109 million or 82% of original investment cost. Electra now holds shareholder loan notes valued at £196 million and an equity interest of 45% in the combined group alongside the management team and other shareholders.
Electra originally invested in Park Resorts in 2012, buying the company's senior debt at a substantial discount with a view to leading a debt restructuring. Electra Partners achieved this restructuring in August 2013, thereby taking a substantial equity interest in Park Resorts and creating a stable platform for investment-led growth. Following this, Electra Partners led the acquisition of two further park businesses which are now being combined into the enlarged group. The combination of operational improvement and investment-led growth resulted in profits across Electra's caravan park businesses growing by 28%, on revenues which rose by 8%, in 2014. This strong performance has continued into the current financial year.
The merger combines two complementary portfolios of holiday parks to create a nationwide operator with 73 sites and EBITDA of over £100 million.
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"We are delighted this transaction has now completed. We will now focus on further organic and investment-led growth as well as capturing synergies created by the combination of two highly complementary estates.
"This latest step in the Park Resorts story further illustrates how Electra Partners' flexible investment strategy can be used to maximum effect. What started as an investment in Park Resorts' senior debt has now become an equity position in a business of real scale and with strong growth prospects in the UK domestic holiday sector."
Alex Fortescue, Sarah Williams and Tom Stenhouse are responsible for the investment in Park Resorts Group. Alex and Sarah will represent Electra Partners on the Board of the new company.
This continues a busy start to Electra's financial year, which since October has included the realisations of Zensar Technologies as well as of MIMS and MRO from AXIO Data Group; and the announcement of an £89 million investment in the acquisition of PhotoBox Group.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Electra Partners
+44 (0)20 7306 3902
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market. During the last 25 years it has invested in excess of £4.5 billion in over 200 deals. As at
30 September 2015, the firm had funds under management of over £1.8 billion including capital available for investment of nearly £350 million.
Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2015, Electra has seen diluted NAV per share growth of 244%. This is seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, at the upper end of Electra's target range of 10-15% over the long-term.
For further information please visit www.electrapartners.com
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.