Target Information

Electra Partners has successfully acquired Southview and Manor Park holiday parks from Bluebird Partners and a European bank for a total transaction value of £49 million. This acquisition includes a £20 million investment from Electra Private Equity PLC, supported by an integrated debt facility from Investec Growth & Acquisition Finance. The addition of these holiday parks brings Electra's total investment in the holiday parks sector to over £100 million, following their previous refinancing of Park Resorts and the acquisition of South Lakeland Parks the year prior.

Southview, located in Skegness, Lincolnshire, and Manor Park in Hunstanton, Norfolk, are both large, established holiday parks boasting more than 2,000 pitches, a nine-hole golf course, and the four-star Southview Park Hotel. Park Resorts, which has been managing these parks since 2010, will continue its operations post-acquisition, further solidifying its status as the largest holiday park operator in the UK.

Industry Overview

The holiday parks sector in the UK has shown resilience and growth potential, fueled by increasing domestic tourism and a shift in consumer preferences toward staycations. The landscape is characterized by a fragmented market, with numerous operators seeking to capture interest from families and individuals looking for leisure opportunities. The UK holiday park industry is valued at approximately £1.5 billion, with expectations for continued growth as more people opt for short, local getaways.

With a rising affinity for outdoor experiences, holiday parks present a valuable investment opportunity. Additionally, enhanced consumer spending power and a growing focus on unique travel experiences contribute to the sector's robust prospects. Operators who adapt to changing consumer trends, such as offering eco-friendly accommodations or incorporating luxury amenities, are well-positioned for sustained growth.

Moreover, the industry benefits from supportive regulations and local tourism initiatives that aim to boost holiday park appeal. These factors, combined with increasing disposable income among UK residents, highlight an environment ripe for investment and expansion. Industry leaders must remain vigilant, however, as economic fluctuations can impact discretionary spending habits.

Rationale Behind the Deal

This acquisition marks a strategic move in Electra Partners' ongoing efforts to consolidate the holiday parks market. By acquiring Southview and Manor Park, Electra can leverage Park Resorts' established management expertise while enhancing its competitive advantage within the sector. This transaction underscores Electra Partners’ commitment to identifying and capitalizing on high-value growth opportunities within a fragmented market.

The decision aligns with Electra's flexible investment strategy, which has evolved from a senior debt position in Park Resorts to a controlling equity stake, thus reinforcing its leadership in the UK holiday parks sector.

Investor Information

Electra Partners is an independent private equity fund manager with over 25 years of experience in the mid-market buyout space. With a track record of investing more than £4.1 billion across 200 deals, the firm has shown remarkable performance in managing funds of over £1.5 billion. Its long-term investment strategy focuses on flexibility and the ability to realize investments at optimal times for its investors.

Electra Private Equity PLC, a long-standing client of Electra Partners, has consistently outperformed major benchmarks, illustrating its prowess in generating returns. The firm's well-researched investment approach supports the identification of potential acquisitions aligned with market trends and consumer demands.

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The acquisition of Southview and Manor Park presents a compelling investment opportunity for Electra Partners. By strategically expanding its portfolio in the resilient holiday parks sector, Electra enhances its market leadership while positioning Park Resorts for continued growth. The existing management's familiarity with these parks adds significant value, as they can implement established operational practices and efficiencies.

Furthermore, the fragmented nature of the holiday parks market suggests potential for continued consolidation, allowing Electra to capitalize on synergies and revenue enhancements across its portfolio. The increasing preference for domestic holidays offers additional growth avenues, making this acquisition not just timely but also strategically sound.

However, as with any investment venture, challenges remain, particularly regarding economic fluctuations that may impact consumer discretionary spending. Monitoring these external trends will be critical for sustaining growth and achieving expected returns.

Overall, this transaction appears to be a judicious investment that aligns with Electra Partners' long-term strategy and market expertise, positioning it favorably for future opportunities in the evolving holiday parks landscape.

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