UK holiday homes business Sykes Cottages has reportedly received a multi-million pound investment from a private equity firm.
Living Bridge is understood to be investing alongside Sykes’ management in a deal that values the company at £54 million, The Telegraph reported.
Sykes Cottages runs more than 5,000 holiday homes across the UK and Ireland and attracted interest from a number of potential buyers including Wyndham.
Clive Sykes, who took over the business from his mother 12 years ago, will be staying at the company as chairman.
Sykes Cottages posted pre-tax profits to £3.8 million last year on a turnover of £13.4 million.
The deal follows a series of private equity investments in the travel sector. The latest deals saw Phoenix Equity Partners invest in river cruise business Riviera Travel while luxury operator Scott Dunn attracted investment from UK mid-market firm Inflexion.
Jonathan Buxton, partner of Cavendish Corporate Finance which advised Scott Dunn on its deal with Inflexion, told the newspaper: “The deal is further evidence of the growing appetite of financial buyers and private equity houses for travel and leisure businesses, particularly those in the premium, luxury space, which are capitalising on the resurgence in global growth and the increase in wealth that it drives.”