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Graphite Capital makes 2.3x exit on £172m sale of Park Holidays UK

12 Nov 2013

UK mid-market private equity firm Graphite Capital has sold UK caravan park operator Park Holidays UK to Caledonia Investments for £172m.

The sale yielded a total return of 2.3 times its investment. Graphite has now realised six investments in the sector, generating a multiple of 3.1 times cost and an IRR of 28.1 per cent.

Park Holidays UK owns 21 freehold and two leasehold caravan parks with nearly 9,000 pitches in southern England. The group sells caravans to owners and hires caravans to holiday makers. The business was founded in 1985 and was acquired by Graphite in a £130m buy-in/management buy-out in January 2006.

Since the buyout, the company has expanded its holiday lettings business across all its parks. During this time, turnover more than doubled to £84m and EBITDA increased by 72 per cent to £20.4m.

The sale brings the total value of disposals made by Graphite since October 2012 to over £1bn. Graphite has sold seven companies over this period realising £579.3m of equity proceeds from an initial cost of £202.3m and generating a total return of 2.9 per cent cost.

Graphite managing partner Rod Richards, said, “The performance of our portfolio has been remarkably strong during the economic downturn. We delayed making realisations until we could achieve prices that reflected the quality of the underlying companies. As a mid-market firm we are obviously delighted to have generated over £1bn of disposals since October 2012 and to have achieved a return of almost three times cost.”

Graphite Capital recently raised £500m for its eighth fund Graphite Capital Partners VIII.

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