TIDMCLDN
RNS Number : 1678S
Caledonia Investments PLC
19 December 2016
CALEDONIA INVESTMENTS PLC
SALE OF INVESTMENT IN PARK HOLIDAYS UK
Caledonia Investments plc ("Caledonia") is pleased to announce
that it has agreed terms for the sale of Park Holidays UK ("Park
Holidays"), the UK's third largest holiday park operator, to Tiger
Bidco Limited, a special purpose vehicle incorporated by
Intermediate Capital Group plc ("ICG"), for a headline enterprise
value of GBP362m. Caledonia will receive GBP197m in cash, net of
fees, for the sale of its 81.5% fully diluted equity stake. The net
proceeds will be held on deposit for future investment.
The net proceeds represent a premium of 47% to Caledonia's
carrying value of Park Holidays at 30 September 2016 of GBP134m and
are in addition to GBP41m of cumulative distributions that the
Caledonia group has received from Park Holidays since it acquired
the business in 2013. Overall, Caledonia will have realised a net
IRR of 44% and a money multiple of 2.9x from its investment in Park
Holidays.
Park Holidays was originally acquired by Caledonia in November
2013 for a headline valuation of GBP172m. At that time, Caledonia
backed Park Holidays' incumbent senior management team of Jeff
Sills (Chief Executive), Al Loch (Chief Financial Officer), Tony
Clish (Commercial Director) and Adrian Fawcett (non-executive
Chairman), all of whom will remain in place following the sale to
ICG.
Under Caledonia's ownership, Park Holidays accelerated capital
investment across the estate driving further revenue growth in
addition to increasing the number of parks it operates from 23 to
26. These actions supported strong growth in profitability with
EBITDA expected to be up 79% from GBP20.4m (for the year ended 31
December 2012) to an estimated GBP36.5m (for the year ending 31
December 2016).
Completion of the transaction is conditional on the approval of
the Financial Conduct Authority which could take up to three
months.
Commenting on the sale, Duncan Johnson, Caledonia's Head of
Unquoted Investments, said:
"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 and we congratulate Jeff Sills and
his team, as well as the company's Chairman, Adrian Fawcett, for
their stewardship of the business over the past three years. We
wish them and the business every success in the future."
Jeff Sills, Chief Executive Officer of Park Holidays,
commented:
"We were attracted to Caledonia because of its unique investment
model. Caledonia has proved to have been a very supportive
financial partner over the past three years, which has enabled us
both to acquire new sites and improve the quality of our existing
estate. We look forward to continuing to deliver good returns for
our new investor."
Will Wyatt, Chief Executive of Caledonia, stated:
"Park Holidays has been an outstanding investment for Caledonia
and we are delighted with the progress it has made since we became
involved in 2013. It exemplifies our ability to find and attract
capable management teams and I am delighted that the outcome has
been so successful for both us and Jeff Sills and his
colleagues."
19 December 2016
For further information contact:
Caledonia Investments
plc
Will Wyatt,
Chief Executive +44 20 7802 8080
Duncan Johnson,
Head of Unquoted
Investments
Media contact:
Tulchan Communications
Peter Hewer +44 20 7353 4200
This announcement contains inside information relating to
Caledonia.
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on
the London Stock Exchange with net assets of approximately GBP1.7bn
as at 30 November 2016. The company maintains a concentrated
portfolio of international quoted, unquoted and fund investments
and has paid an increasing annual dividend for 49 years.
In the unquoted arena, Caledonia seeks to invest GBP25m to
GBP100m in private companies either on a majority or minority
basis, providing a meaningful presence and growth capital
supporting double-digit operating margins. In addition to Park
Holidays, its current unquoted portfolio includes Cobehold (a
European unquoted investment house), Gala Bingo (the UK market
leading retail bingo operator), Seven Investment Management (a
provider of discretionary fund management, asset management and
self-invest platform services), The Liberation Group (the market
leading Channel Islands pub, restaurants and drinks business), The
Sloane Club (a London residential club) and Choice Care Group (a UK
learning disability care homes provider).
For additional information on Caledonia, please visit
www.caledonia.com.
Park Holidays
Park Holidays was originally established in 1985 under the name
Cinque Ports Leisure Limited by Peter Bull and Jim Watson and
subsequently sold in 2006 to a management buy-in led by Jeff Sills,
Al Loch and Tony Clish. The business was rebranded Park Holidays UK
in 2007.
Park Holidays' portfolio currently has a total of c. 10,000
developed caravan pitches, 76% of which are owner occupied and 14%
of which are hired out to holiday makers on a short term basis.
For additional information on Park Holidays, please visit
www.parkholidays.com.
Transaction
The sale of Park Holidays was led by Andy Powell and Tim Lewis
for Caledonia.
PricewaterhouseCoopers (Rick Jones) provided corporate finance
advice to Caledonia, with legal advice provided by Macfarlanes
(Stephen Drewitt), vendor financial due diligence by KPMG (Barry
Carter) and vendor commercial due diligence by CIL (Alex Marshall).
Management was advised by Wyvern Partners (Martin Kitkatt) and DWF
(Mark Gibson).
Neither the contents of Caledonia's or Park Holidays' websites,
nor the contents of any website accessible from hyperlinks on such
websites (or any other website) is incorporated into, or forms part
of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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