Butlin’s is being tipped to be bought back by its previous owners for more than £300 million amid continuing demand for domestic holidays.
The Harris family, which helped to establish Bourne Leisure in the 1960s, is reportedly close to signing a deal with US private equity firm Blackstone.
The Harris family’s interest bid to acquire Butlin’s comes 18 months after it sold Bourne Leisure to Blackstone for more than £3 billion.
An auction of the chain of three Butlin’s holiday villages has been under way since early this year, drawing interest from financial bidders including Bain Capital, Epiris, TDR Capital and Guy Hands’ Terra Firma Capital Partners, Sky News reported.
A transaction, which could be struck as soon as next week, would take the total proceeds from the sale of Butlin’s to more than £600 million.
The UK’s biggest private pension fund, the Universities Superannuation Scheme (USS), last month said it was buying Butlin’s underlying real estate assets for £300 million.
Butlin’s sites are at Skegness, Minehead and Bognor Regis.
Bourne Leisure owned Butlin’s since 2000, when it bought the business and sister brands Haven Holidays and Warner Leisure Hotels in a deal reportedly worth £600 million.
It announced a change in strategy to become direct-sell only during the pandemic.
Investment bank Rothschild, the investment bank, is reported to be advising Blackstone on the Butlin’s sale.