Deal Announcement

DC Advisory advised LDC on the sale of Away Resorts to Bregal Freshstream

24 maja 2019

Background

  • Away Resorts (the company) is a fast-growing and dynamic operator with six unique and well-invested holiday parks in prime tourist locations throughout the UK
  • Operating a resilient, mixed-income model, Away Resorts offers a range of quality accommodation choices for purchasers or holidaymakers and is uniquely positioned to attract younger, millennial and family customers
  • Set up in 2008 by industry veterans Carl Castledine, Neill Ryder and Greg Lashley, the company has grown consistently since inception, with strong financial growth over the last ten years
  • Away Resorts’ parks are located in the New Forest, Lincolnshire, the Isle of Wight, North Wales, Hayling Island and Essex
  • Away Resorts generates an annual turnover of c.£63m

Process

  • DC Advisory (DC) was engaged by Lloyds Development Capital (LDC) to provide M&A and debt advice in relation to the sale of Away Resorts
  • DC worked closely with management and shareholders to prepare the company for sale, optimising the timing and competitiveness of the sale process
  • Running a tailored auction, DC distributed Information Memoranda and Vendor Due Diligence reports to a pre-qualified group of potential purchasers
  • DC also co-ordinated a lender education process by providing prospective lending banks and funds with early access to the company and management, so as to provide potential purchasers with a range of debt financing options
  • This process allowed the eventual purchaser to accelerate significantly to signing

Outcome

  • As a result of a competitive, DC-run process, Away Resorts announced its sale to Bregal Freshstream (Freshstream), a European investment firm, in May 2019. Financial terms of the transaction are undisclosed and closing is subject to FCA approval
  • Freshstream is well-placed to support Away Resorts’ continued growth by leveraging the company’s strong brand, continued resort development and appeal to the younger family demographic in a fragmented sector
  • A number of large holiday park operators (including Away Resorts) have put a Ground Rent structure in place. However, as a sector first, DC has advised on a sale of a sizeable holiday park operator with an existing Ground Rent structure
  • The founding management team, led by CEO Carl Castledine, will continue to lead the business under Freshstream’s ownership and LDC will maintain a minority shareholding in the company

Deal Team