Target Information

Away Resorts, founded a decade ago by leisure entrepreneur Carl Castledine, is a prominent holiday park operator in the UK. The company currently manages six leading resorts located in prime destinations, such as Tattershall Lakes in Lincolnshire and Whitecliff Bay on the Isle of Wight, catering to nearly 200,000 holiday-makers annually.

Since LDC's investment in 2015, Away Resorts has seen substantial growth, fueled by strategic expansions and acquisitions, including the purchase of Mersea Island Holiday Park in Essex and Sandy Balls in the New Forest. Over the past four years, the company has invested over £45 million in upgrading its sites with modern entertainment complexes and enhanced amenities, leading to an increase in revenue to £63 million and a workforce expansion from 450 to 950 employees.

Industry Overview

The holiday park industry in the UK has experienced significant growth and transformation over recent years, driven by an increased demand for affordable domestic travel options. This trend was notably accelerated during the COVID-19 pandemic, which shifted consumer preferences towards local vacations and staycations. The sector is characterized by a diverse range of offerings, from luxury lodges to traditional camping sites, appealing to families and couples alike.

UK holiday parks have become particularly popular among younger generations seeking unique and flexible holiday experiences. The rise of online platforms for booking and reviewing accommodations has further propelled this transformation, making it easier for consumers to find and reserve their desired holiday parks.

In addition to changing consumer behaviors, the holiday park industry is also benefiting from advancements in technology and marketing strategies. Operators are increasingly investing in digital platforms to enhance customer engagement and streamline booking processes, thereby improving overall customer satisfaction and loyalty.

As tourism continues to rebound, the outlook for the UK holiday park industry remains positive. With investment in infrastructure and service offerings, established operators are well-positioned to capture a larger share of the growing domestic travel market.

Rationale Behind the Deal

The acquisition of Away Resorts by Bregal Freshstream is strategic, as it allows the investor to capitalize on the booming holiday park industry in the UK. The continued investment in Away Resorts is expected to drive further growth by enhancing existing facilities and expanding the portfolio, which is anticipated to strengthen the company's competitive position.

Furthermore, LDC's decision to retain a minority stake demonstrates their confidence in the company's future potential and their ongoing interest in supporting its operational strategies.

Investor Information

Bregal Freshstream is making its mark on the UK market with the acquisition of Away Resorts, marking its tenth investment since launching its maiden €600 million fund in 2015. The firm has built a diverse portfolio that includes various sectors such as retail, construction, and healthcare, indicating a strategic approach to balancing investments across industries.

The addition of Away Resorts to Bregal Freshstream’s portfolio aligns with their commitment to identifying high-growth potential companies. The firm's expertise in the leisure and hospitality sectors enhances its capacity to support Away Resorts in expanding its market share and operational efficiency.

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The investment in Away Resorts by Bregal Freshstream represents a promising opportunity given the resilience and growth potential of the UK holiday park industry. The combination of LDC's established experience in the business alongside Bregal's financial backing provides a solid foundation for future developments.

With the intention to direct an additional £25 million into the portfolio, Away Resorts is well-positioned to capitalize on the upsurge in domestic holiday demand. This investment could significantly enhance customer offerings and improve overall profitability.

However, it is essential to remain cautious of potential risks, including market saturation or changing consumer preferences that could impact occupancy rates. Nonetheless, if managed effectively, this investment has the capacity to deliver substantial returns over time.

In conclusion, the acquisition appears to be a strategically sound investment with robust prospects for growth, making it an attractive proposition in the current tourism landscape.

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