AERMONT takes majority stake in PARK HOLIDAYS

Sun Communities has entered into a definitive agreement to acquire Park Holidays UK, the second-largest operator of holiday parks in the UK, marking the company's entry into the British market for leisure and vacation homes. The US-based group is acquiring a portfolio of holiday communities primarily located in popular coastal areas in southern England. The acquisition represents a natural extension of Sun Communities' business and is in line with its international expansion strategy. It provides a premier growth platform in a still-fragmented UK market, while further diversifying the company's geographic footprint. Following the acquisition, Park Holidays will retain its existing management team, led by CEO Jeff Sills, who will continue to oversee the company's operational management after the transaction is completed. This managerial continuity is expected to enable the company to build on its organic and external growth strategy, which has been in place in recent years. The deal is based on the complementary business models of the two companies, both of which specialize in operating residential and leisure communities. Sun Communities plans to leverage its experience in the North American market to accelerate the development of the UK platform and strengthen its presence in a sector that is experiencing sustained demand for staycations and vacation homes.

The sale of Park Holidays UK by Caledonia Investments occurs after a 3-year holding period, during which the holiday park network underwent substantial expansion, growing from 23 to 26 establishments. This secondary buyout enables Intermediate Capital Group to enter the still highly fragmented UK outdoor hospitality market, with the goal of consolidating independent operators and modernizing existing infrastructure. Financing provided by the new majority shareholder will be crucial in supporting this expansion strategy, aimed at bolstering Park Holidays UK's market position. The current management team, comprising Jeff Sills, Al Loch, Tony Clish, and Adrian Fawcett, will remain in place to execute this plan, tasked with implementing initiatives to enhance profitability at each location and transform the operator into a national platform. This transaction also marks the realization of a profitable investment for Caledonia, which generated a significant net return during the holding period, with a total return on investment of 44% and a multiple of 2.9 times its investment, driven by robust operational performance, including EBITDA growth from £20m to £36.5m.

Caledonia Investments has successfully completed a capital restructuring of Park Holidays, acquiring a majority stake in the holiday park operator. This transaction is part of a strategic plan to support the company's growth, which generated an EBITDA of over £20 million for the year ended December 31, 2012. Park Holidays boasts a portfolio of 23 holiday parks, comprising 21 freehold and 2 leasehold properties, located in southern England. The acquisition was funded through a combination of equity (£88 million) and bank debt (£90 million), provided by a syndicate of banks including RBS, HSBC, Lloyds Bank, Barclays Bank, and Santander, with an additional £10 million facility available for future investments and acquisitions. The existing management team, consisting of Jeff Sills, Al Loch, and Tony Clish, who originally acquired the business in 2006 with the support of Graphite Capital, will remain in place to drive the company's next phase of development. This transaction will enable Park Holidays to continue its expansion, including targeted acquisitions, and strengthen its market position.