20 June 2006
Legal & General Ventures ("LGV") announces its acquisition of South Lakeland Caravans Limited ("South Lakeland"). Financial details of the transaction have not been disclosed. South Lakeland owns nine lodge and caravan parks in and around the Lake District and Morecambe Bay regions. Two of its Lake District parks, White Cross Bay and Fallbarrow are situated on the shore of Lake Windermere, whilst a third, Limefitt is situated in the Troutbeck Valley.
South Lakeland operates predominantly on the owner-occupier model, generating most of its revenue from the sale of caravans and lodges. It is a leading provider of timber-lodge units in the country, which represents a fast growing market. The company also maintains a hire fleet and a small number of touring pitches for caravans and tents. The UK holiday market is a growing one and Mintel research shows that from 2002 to 2005 the number of holidays taken at UK holiday centres (including lodge & caravan parks) has risen by an average of 2.3% per annum with prices increasing by 7.3% per annum over that same period. LGV has acquired South Lakeland from John Morphet, who has built the business since its establishment in 1988. LGV will be backing the existing management team, led by Chief Executive, Graham Hodgson. The team will be supported by the introduction of a new Finance Director, Nigel Wimpenny, formerly Finance Director of Burtonwood Brewery plc.
LGV is attracted to the high quality and unique location of the parks and will aim to develop the portfolio through selective investment and further acquisitions. Commenting on the investment, Bill Priestley, Managing Director at LGV, said:
"We are delighted to have acquired South Lakeland which continues LGV's focus on the leisure industry, one of our core sectors. We have had a successful experience with caravan parks in the past, having invested in Bourne Leisure, and are looking forward to working with Graham and the team to develop the business further. The parks are unique assets, in some of the most picturesque areas of the country." Commenting on the acquisition, Graham Hodgson, Chief Executive of South Lakeland said: "The incumbent management team, together with John and Vicki Morphet, have successfully developed the existing business both in the UK and overseas. This transaction will allow John to concentrate on his other enterprises and the management team to focus on the core UK business. The support of LGV and Anglo Irish Bank will enable South Lakeland to take advantage of any suitable acquisitions as they arise, generating exciting opportunities for all managers and staff going forward. We believe that our existing blend of parks offers a tremendous platform for further expansion."
The Manchester office of Grant Thornton advised LGV on its acquisition of South Lakeland. KPMG acted for the vendor. Senior and mezzanine debt for the deal has been provided by the London office of Anglo Irish Bank.
