LONDON (ShareCast) - Caledonia Investments has acquired Park Holidays UK, which owns and operates caravan parks in the south of England.

Park Holidays has been run by its current management team of Jeff Sills, Al Loch and Tony Clish since January 2006, when they acquired the business from its founders through a management buy-in.

Park Holidays has since grown to become the UK's fourth largest caravan holiday park operator.

In the financial year to December 31st 2012, Park Holidays generated earnings before interest, tax, depreciation and amortisation (EBITDA) of £20.4m and profit before tax of £2.5m, with gross assets of £256.5m.

The transaction values the business at £172m which has been funded by £88m of equity from Caledonia and £90m of bank debt.

Royal Bank of Scotland, HSBC, Lloyds Bank, Barclays Bank and Santander have provided the acquisition debt facilities.

"Caledonia's unquoted strategy is to invest in leading businesses which combine an ability to grow profits with the capability to pay a healthy annual cash return to shareholders," said Chief Executive Will Wyatt.

"Park Holiday's business model, as one of the leading businesses in its sector, fits these criteria well."

Shares in Caledonia fell 0.52% to 1,924p at 14:27 on Monday.

RD

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