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Electra to receive proceeds of c £405m from the sale of Parkdean resorts

Epiris, the manager of Electra Private Equity, has announced that it has agreed the sale of Parkdean Resorts, a leading UK operator of caravan holiday parks, to Onex Corporation, for £1.35 billion. Espiris says that it anticipates that the transaction will close in the first quarter of 2017, subject to customary regulatory approvals. Espiris says that, based on completion on 1 March 2017, Electra Private Equity would receive proceeds from the sale of circa £405m, an uplift of £25m and equivalent to an increase in its NAV of 50 pence per share on the valuation of its investment at 30 September 2016 and, together with proceeds previously received, Electra’s total proceeds from the investment will be £515m. This equates to a return of c.3.9x cost, and an IRR of c.46%.

Epiris originally invested £70m in the acquisition of term debt in holiday parks operator Park Resorts in 2012, before leading a consensual restructuring of Park Resorts’ debt facilities in 2013, following which funds managed or advised by Epiris became the majority shareholders. The restructuring allowed Epiris to implement its business plan which was based on accelerating organic growth through increased investment and growing through acquisition. Between 2013 and 2015, Park Resorts completed three add-on acquisitions, including South Lakeland Parks and Southview and Manor Park holiday parks. In November 2015, Park Resorts, South Lakeland Parks and Southview and Manor Park holiday parks were merged with Parkdean Holidays in a transaction that gave the enlarged company an enterprise value of £960 million, and since then as Parkdean Resorts one further acquisition has been made.

Parkdean Resorts owns and operates 73 holiday parks across England, Scotland and Wales, selling more than 500,000 holidays and short breaks a year. The company offers a wide range of accommodation, from caravans and camping pitches to chalets, apartments and lodges. Parkdean Resorts employs over 6,000 staff during the peak holiday season and is headquartered in Hemel Hempstead and Newcastle, UK.

Electra to receive proceeds of c £405m from the sale of Parkdean resorts : ELTA

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