Hi-de-hi, hi-de-buy? Blackstone in for Butlin’s owner
US private equity firm Blackstone is closing in on a stake in the owner of Butlin’s holiday resorts as it looks to cash in on higher demand for staycations after the pandemic.
The investment giant is in advanced talks with Bourne Leisure over acquiring a significant holding in a deal that values the company at roughly £3bn.
It is understood the three families who currently own the business will retain a stake.
If completed, the deal will mark a major bet on British holidaymakers flocking to domestic resorts in the wake of the coronavirus crisis.
In addition to Butlin’s, Bourne Leisure also owns Haven and Warner Leisure Hotels, as well as dozens of caravan parks across the UK.
The travel sector has been decimated by the pandemic, with lockdowns forcing widespread closures and battering revenue.
But the crisis has sparked speculation of greater demand for staycations as Brits shun international travel.
The deal, first reported by The Times, would also mark further investment in the UK by Blackstone as it bets on the country’s post-Brexit prospects.
The New York-based private equity group bought the NEC Group and its Birmingham arenas for a reported £800m in 2018.
It also has a track record in the leisure sector through its investment in Legoland owner Merlin, which it helped take private with the Lego family in 2019 in a deal valuing the resort company at $7.5bn.
Blackstone declined to comment.