A £47 million transaction is set to see private equity firm Electra Partners take control of holiday parks operator South Lakeland Parks.
A syndicated deal between Electra Partners and Investec Growth & Acquisition Finance will see White Ocean Leisure exit its involvement with South Lakeland Parks.
Set up in 1988, South Lakeland Parks owns and operates nine sites in the Lake District and Morecambe Bay region.
Under the terms of the deal, Electra Partners, which is acting on behalf of Electra Private Equity, is investing £22 million. Deal partner Investec will be providing an integrated debt facility.
According to a statement, the acquisition is being made in partnership with Electra’s existing portfolio company Park Resorts, of which the firm bought a £45 million term debt back in January 2012. Subsequent debt purchases have since raised its stake to £69.8 million.
Park Resorts will now be managing South Lakeland Parks, taking the combined holdings to 48 properties.
David Boden, CEO of Park Resorts, comments, ‘The South Lakeland parks add a new dimension to our existing holiday park portfolio and we look forward to working with Electra Partners to further develop and improve the parks.’
The new investment for Electra Partners builds on a busy year of dealing. During 2013, the firm has made five new commitments and two exits.
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Alex Fortescue, chief investment partner at Electra Partners, adds, ‘This transaction, the latest step in our investment in the holiday parks sector, further illustrates the flexibility of our investment strategy and its suitability to current market conditions.
‘Starting from an initial position in Park Resorts’ debt, we now have a controlling position in the largest player in the largest player in the holiday parks market.’