UK caravan park firm Park Resorts to merge with rival Parkdean

Electra Private Equity has announced the proposed merger of Hemel Hempstead-headquartered Park Resorts Group with Parkdean Holidays in a deal which gives the enlarged company an enterprise value of £960m.

The merger is the largest transaction in the sector since Bourne Leisure acquired Rank Holidays 15 years ago and will be subject to Competition and Markets Authority approval.

On completion of the deal, a new GBP550.0 million debt facility will be used to refinance the existing debt facilities of the businesses, including those in which Electra has invested, and will result in expected cash proceeds to the private equity investor of GBP96.0 million.

Brits recovering from washout Bank Holiday trips to caravan parks will see a new name over the door if they venture back after Park Resorts revealed plans to merge with rival Parkdean to create a near-£1 billion company.

Electra will own 45 percent of the combined business, which will operate 73 holiday parks and generate revenue of about 370 million pounds.

Park Resorts chairman Alan Parker said the two firms “are an outstanding strategic fit with highly complementary estate and revenues mixes”. Park Resorts is double the size with 49 coastal locations in England, Wales and Scotland.

Electra has invested £131m in Park Resorts since buying the then struggling business’s senior debt in 2012. Park Resorts Group is made up of Park Resorts, South Lakeland Parks and Southview and Manor Park.