23 October 2000
Bourne Leisure announces its acquisition of Rank's Holidays Division to create a new force in the British holiday market, subject to Rank shareholder approval. The combined business will serve over 2.5 million holidaymakers a year through leading holiday brands such as British Holidays, Haven Oasis, Butlins and Warner.
The £700 million acquisition of Rank's Holiday Division by Bourne Leisure is backed by leading private equity firms Candover and Legal & General Ventures. Following the completion of the acquisition, Bourne Leisure will be 57.5% owned by its existing shareholders with Candover and Legal & General Ventures jointly owning 28.5% of the enlarged business. The remaining 14% will be held primarily by management. Acquisition financing to support the transaction has been arranged and underwritten by Barclays Capital.
Bourne Leisure is a leading caravan park operator in the United Kingdom with 20,500 pitches in 20 parks. In 1999 it had turnover of £150 million. In British Holidays it has developed a national brand recognised for attractive and well maintained caravans, investment in high quality leisure activities, close attention to landscaping and excellent customer service for both holidaymakers and caravan owners.
Rank's Holiday Division operates through the Haven, Haven Europe, Oasis, Butlins and Warner brands. Last year these businesses had turnover of £419 million and achieved operating profit of £63million. Haven, the Division's leading and most profitable business, is the UK's leading operator of caravan parks in the UK with 33,000 pitches at 57 parks across the UK and 47 owned and franchised sites in Europe. Oasis and Butlins operate four family entertainment resorts and Warner has 13 hotels and resorts.
Bourne Leisure intends to continue to focus solely on the holiday market and will apply the best practices from both businesses across the combined group.
Bourne Leisure looks forward to growing the combined business through an absolute focus on providing the best possible holiday experience for the customers of the merged business. Its priorities are to build on good market positions to create a single, customer focused, results orientated organisation from two excellent companies.
