Private equity giant Blackstone has confirmed an agreement to acquire Butlin’s owner Bourne Leisure.
The Harris, Cook and Allen founding families of the UK business, which also includes Warner Leisure Hotels and Haven, are also co-investing and will together hold a “significant minority” stake in the business.
The value of the deal has not been disclosed but the deal was previously reported to value the business at about £3 billion.
Blackstone previously invested in Center Parcs and owns Merlin, which has grown to become the world’s second largest operator of visitor attractions and theme parks.
Bourne Leisure employs more than 16,000 staff, hosts 25,000 holiday-home owners, and attracts 4.5 million guests to 56 sites across the UK a year.
Haven is the largest UK caravan operator with 38 holiday parks and 2.5 million visitors a year.
Blackstone European head of private equity Lionel Assant said: “We are long-term believers in the UK and are delighted to invest meaningful capital, despite recent uncertainty, to support the recovery of a Covid-impacted industry, and wider local economies.
“We look forward to working in partnership with Bourne Leisure’s founding families, the management team led by Paul Flaum, as well as colleagues from Blackstone Real Estate, to further grow this great company.
“Our strong track record investing in the UK leisure sector will allow us to further enhance the company’s unique, high quality assets across the country, and continue building on its success for guests, holiday-home owners and team members over the last 57 years.”
Flaum, group chief executive of Bourne Leisure, said on Friday: “Today marks the beginning of an exciting new chapter for Bourne Leisure, for our guests, our holiday home-owners and our team members.
“We are delighted to be partnering with Blackstone who have demonstrated a real understanding of our business and sector, and we look forward to working together to deliver on our exciting plans for the future.
“We are also delighted that our founding families will continue to be involved in the business through their significant family minority co-investment.
“We see compelling opportunities to grow Haven, Butlin’s and Warner Leisure Hotels, as well as benefit from the increasing demand for UK domestic holidays.”