LONDON (Alliance News) - Electra Private Equity PLC on Tuesday said it has proposed a merger of its Park Resorts, South Lakeland Parks and Southview and Manor Park portfolio companies with Parkdean Holidays, the UK-based self-catering holidays company.
The merger of the Park Resorts business with Parkdean would create a company with an enterprise value of GBP960.0 million, FTSE 250-listed Electra said.
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.
Electra originally invested in the Park Resorts businesses in 2012 when it acquired the company's senior debt.
"This latest step in the Park Resorts story further illustrates how Electra Partners' flexible investment strategy can be used to maximum effect. What started as an investment in Park Resorts' senior debt has now become an equity position in a business of real scale and with strong growth prospects in the UK domestic holiday sector," said Electra Chief Investment Partner Alex Fortescue.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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