Britain’s fourth largest caravan park operator, Park Holidays, has been sold for £362 million.
Caledonia Investments has sold the firm to Intermediate Capital Group (ICG). The sale represents a £190 million increase on the £172 million that Caledonia paid for the firm back in 2013.
The sale had been rumoured early last year but a deal was shelved until after the EU referendum. The sharp rise in staycations, as a result of the falling value of the pound, has meant that many holiday parks have now become highly profitable assets.
Park Holidays is set to return earnings of around £36.5 million this year. As part of the sale, ICG will retain Park Holidays’ current management team, including chief executive Jeff Sills.
Duncan Johnson, Caledonia’s head of unquoted investments, told the Eastern Daily Press: “Caledonia’s unquoted strategy is to invest in leading businesses which combine an ability to grow profits whilst also paying a healthy annual cash return to shareholders. Park Holidays has delivered in every respect.”
The news comes in the same week that the UK’s largest holiday park operator, Parkdean Resorts, was sold to Canadian firm Onex in a deal worth £1.35 billion.