On Monday it was announced that UK investment trust, Caledonia Investments had acquired caravan park operator Park Holidays UK. Park Holidays owns 21 freehold and two leasehold caravan parks concentrated in the south of England and is the UK's fourth largest caravan holiday operator, generating £2.5m of profit before tax, with gross assets of £256.5m.
The deal valued the business at £172m and was funded by £88m of equity from Caledonia and £90m of bank debt.
Duncan Johnson, head of unquoted investments at Caledonia said:
We are delighted to be supporting Jeff Sills and his team in the next stage of Park Holiday's development. The new capital structure will ensure Park Holidays can continue to enhance its parks around the south of England, as well as allow Jeff and his team to build the business through targeted acquisitions.
Chief executive of Caledonia, Will Wyatt, said that Park Holidays business model fitted Caledonia's unquoted strategy, combining the capability to grow profits and the ability to generate a good annual cash return for shareholders. Caledonia had net assets of £1.3bn as of March 2013.