Caledonia Investments has announced that it has agreed terms for the sale of Park Holidays UK, reportedly the UK’s third largest holiday park operator, to Tiger Bidco Limited, a special purpose vehicle incorporated by Intermediate Capital Group plc, for a headline enterprise value of £362m. Caledonia says that it will receive £197m in cash, net of fees, for the sale of its 81.5% fully diluted equity stake and that the net proceeds will be held on deposit for future investment.
Caledonia reports that the net proceeds represent a premium of 47% to Caledonia’s carrying value of Park Holidays at 30 September 2016 of £134m and are in addition to £41m of cumulative distributions that the Caledonia group has received from Park Holidays since it acquired the business in 2013. Caledonia says that, overall, it will have realised a net IRR of 44% and a money multiple of 2.9x from its investment in Park Holidays.
Park Holidays was originally acquired by Caledonia in November 2013 for a headline valuation of £172m. Caledonia says that, under its ownership, Park Holidays accelerated capital investment across the estate driving further revenue growth in addition to increasing the number of parks it operates from 23 to 26. These actions supported strong growth in profitability with EBITDA expected to be up 79% from £20.4m (for the year ended 31 December 2012) to an estimated £36.5m (for the year ending 31 December 2016). Completion of the transaction is conditional on the approval of the Financial Conduct Authority which Caledonia say could take up to three months.
Caledonia sells its stake in Park Holidays UK for £197m in cash : CLDN