Private equity firm Terra Firma could pay as much as £600 million (about $750 million) for Blackstone-owned British resort group Butlin’s, Sky News reported, as investors continue to tap demand for domestic holidays.
Blackstone bought Butlin’s owner Bourne Leisure, which also operates the Haven and Warner Leisure Hotels brands, in early 2021 for a reported £3 billion. It was the largest hospitality and leisure deal globally in a year that saw private equity investment in the sector rebound to $55.14 billion across 342 deals, according to PitchBook data.
Blackstone reportedly hired banks to advise on the sale of Butlin’s in November. It is not the only UK resort group to attract PE interest as firms seek to back demand for domestic holidays fueled in part by pandemic restrictions on international travel. Last summer, CVC Capital Partners agreed to buy a smaller resort group, Away Resorts, for £250 million.
This month, PAI Partners and TPG‘s real estate arm were reported to be targeting a £1.6 billion deal for Parkdean, a Bourne Leisure rival bought by Onex in 2016 for £1.3 billion. Blackstone and Apollo Global Management have also been named as interested parties, but the latter is understood to have dropped out of the running.
Featured image by Julian Herbert/Getty Images
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