New investor for holiday parks
Private equity outfit Phoenix has paid in excess of £50 million for a controlling stake in Forest Holidays, which has two sites in Scotland, as it looks to cash in on the staycation boom.
The deal unveiled yesterday will see Phoenix sit alongside existing shareholders the Forestry Commission and LDC on the investor register, with the tie-up also triggering an expansion push.
Forest Holidays operates 571 “eco-cabins” and treehouses on nine sites, with a further two in development in Snowdonia and the Brecon Beacons. Its Scottish sites are Ardgartan Argyll, located a short drive from Loch Lomond, and Strathyre in the Queen Elizabeth Forest Park.
Following the investment from Phoenix, the group plans to open at least five additional sites in the UK by 2022.
Forest Holidays has grown strongly since initial investment from LDC in 2012, with earnings rising from under £1 million to more than £10m. The group is valued at some £110m.
David Burns, managing partner at Phoenix, said: “As experienced investors in the leisure sector, we have been watching the progress of Forest Holidays with great interest.
“This fabulous business offers a truly differentiated proposition to the UK holidaymaker, and feedback from its customers is consistently outstanding.”
Forest Holidays has a longterm strategic partnership with the Forestry Commission under which the company operates exclusively on its estate.
Thefirm’scabinsareplanned around existing forest and utilise sustainable materials, such as air-source heat pumps, hydroelectric plants and a dark skies policy across its estate.