11th Nov 2015 09:34
LONDON (Alliance News) - Electra Private Equity PLC Wednesday said it has completed the merger of Park Resorts Group with Parkdean Holidays.
Park Resorts comprises Electra's portfolio companies Park Resorts, South Lakeland Parks and Southview and Manor Park. The merger combines two portfolios of holiday parks comprising 73 sites and values the enlarged company at GBP960 million. Earnings before interest, tax, depreciation and amortisation is over GBP100 million for the combined business.
FTSE 250-listed Electra received cash proceeds of GBP95 million on completion, taking the total cash proceeds to GBP109 million which is 82% of the original investment cost. Electra now holds loan notes of GBP196 million and an equity interest of 45% in the combined group.
"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," Chief Investment Partner Alex Fortescue said in a statement.
"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," Fortescue added.
Shares in Electra were trading up 0.3% at 3,628.16 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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