Onex reportedly mulls sale of Parkdean Resorts
Tue, 05 Oct 2021 | BUSINESS SALE
According to reports, Canadian firm Onex Corporation has entered discussions with investment bankers regarding a potential sale of UK holiday park firm Parkdean Resorts, as it looks to cash in on the UK’s booming domestic travel market.
While a timeframe and valuation for the potential auction have not been confirmed, reports indicate that Onex could stand to gain more than the £1.35 billion it paid to acquire the business in 2016.
Parkdean Resorts, which is based in the North East, was founded in 2015 through the merger of Parkdean Holidays and Park Resorts. The company has 67 locations across the UK, including many in coastal settings and areas of natural beauty.
The company has been a significant beneficiary of the boom in UK “staycations” that has accompanied the easing of nationwide lockdown restrictions. In particular, Parkdean has taken advantage of widespread restrictions on international travel to target new customers.
This has enabled the firm to set out ambitious investment plans. In May, Parkdean confirmed that it would embark on a £70 million nationwide investment plan during 2021, with £22.5 million set to be spent acquiring over 700 new lodges and caravans, £12 million for new technology and £13 million for maintenance. The company also revealed plans to build three “Parks of the Future”.
The UK’s boom in domestic holidaymaking has led to a surge in M&A activity in the sector. Deals have ranged from major investments by private equity firms, such as CVC’s £250 million takeover of holiday park operator Away Resorts, to acquisition drives by market leaders, such as the numerous acquisitions made by holiday cottage platform Sykes Holiday Cottage.
If a sale of Parkdean Resorts does go ahead, then this would be among the biggest deals to result from the boom in UK domestic travel M&A.
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