25 February 2004
Legal & General Ventures ("LGV") and Candover, two leading UK private equity firms, announce that they have sold their combined 28% stake in Bourne Leisure back to the company for an undisclosed sum. In October 2000, LGV and Candover backed Bourne Leisure in its acquisition of the Holidays Division of Rank. The return on the equity investment represents a multiple in excess of two times.
Bourne Leisure is one of Britain's leading leisure companies, with a turnover in excess of £670 million in the year to 31st December 2003. It is the largest operator of caravan parks in the UK, trading under the Haven and British Holidays brands. Its operations also include the Warner Hotel chain, the three Butlins resorts and Haven Europe.
LGV has been an investor in Bourne Leisure since 1997. In 2000, LGV and Candover provided equity funding to enable the company to acquire the Holidays Division of Rank. Since the acquisition, Bourne Leisure has embarked upon an extensive capital investment programme to ensure its facilities continue to provide the best possible holiday experience for all its customers. In addition, some peripheral operations such as the Oasis resort and a number of smaller caravan parks have been sold.
John Dunford, Director, Bourne Leisure said:
"The integration of Bourne and Rank's Holiday Division was a tremendous challenge for the management team. The key to its success was the support of our guests and team members, together with Candover and LGV, the private equity firms that shared our vision for the business. We look forward to continuing our work on the next stage of Bourne's development and thank Candover and LGV for their support." Commenting on the transaction, Michael O'Donnell, Director, LGV said:
"The Bourne investment played to a number of LGV's strengths: teaming up with a trade partner to implement a buy and build strategy; creating a focused group through the disposal of non core assets; and working with a committed management team that delivers results."
