Caledonia Investments agrees sale of Park Holidays

19th Dec 2016 07:15

(ShareCast News) - Caledonia Investments has agreed the terms of the sale of holiday park operator Park Holidays UK to special purpose vehicle Tiger Bidco for a headline enterprise value of £362m.The company will receive £197m in cash, net of fees, for the sale of its 81.5% fully diluted equity stake and the net proceeds will be held on deposit for future investment.The net proceeds represent a premium of 47% to Caledonia' carrying value of Park Holiday at 30 September of £134m and are in addition to £41m of cumulative distributions that the Caledonia group has received from Park Holidays since it acquired the business in 2013. Completion of the deal is conditional on approval from the Financial Conduct Authority, which could take up to three months. Chief executive Will Wyatt said: "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."Caledonia said it will have realised a net internal rate of return of 44% and a money multiple of 2.9x from its investment in Park Holidays.