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12/2016

PARK HOLIDAYS acquired by ICG

UNITED KINGDOM Hospitality & Leisure / Hospitality EV 300M - 700M GBP

Context

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.

It is worth noting that the fund Caledonia Investments took control of Park Holidays through an LBO in 2013.

PARK HOLIDAYS, which reported an EBITDA margin of in 2015, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Retail & Consumer sector (10.9x).

-> Deep-dive in Retail & Consumer market trends

Target

Park Holidays UK, headquartered in Hastings, operates a portfolio of holiday parks across the United Kingdom, providing a range of caravan and lodge stays, glamping options, camping facilities, and pitches for caravans and lodges, as well as the opportunity to purchase a secondary residence. Established in the 1980s, the organization underwent significant expansion in 2001 with the acquisition of ten parks from Haven Holidays, enabling it to extend its presence into Dorset, Hampshire, Essex, and Suffolk. The parks offer a variety of amenities, including leisure facilities, clubs, swimming pools, sports facilities, and luxury holiday accommodations. In recent years, the organization has undertaken substantial renovation work, focusing on enhancing its infrastructure, clubs, and accommodations to bolster its service offerings. The company's economic model generates revenue from three primary streams: the sale of static caravans to private owners, site fees paid by these owners, and the rental of holiday stays to vacationers.

Ent. Value

Equity Value

Multiples

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EV / EBIT

Historical Financials (GBP)

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2014

Other operations with PARK HOLIDAYS

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
05/2026AERMONTPARK HOLIDAYSUNITED KINGDOMHospitality
11/2021SUN COMMUNITIESPARK HOLIDAYSUNITED KINGDOMHospitality
11/2013CALEDONIA INVESTMENTSPARK HOLIDAYSUNITED KINGDOMHospitality

REFERENCES

Valuation range: EV 300M - 700M GBP

EBITDA range: 25M - 50M GBP

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of PARK HOLIDAYS by ICG are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Acquirer: icg