Alchemy backs Parkdean MBO

A management buyout (MBO) bid backed by Alchemy Partners has signed a recommended offer to buy Parkdean Holidays, a UK based operator of caravan holiday parks. The agreed cash offer at 270.5p per share values Parkdean at £139.7m and has been unanimously recommended by the company’s independent directors.

Shares in AIM listed Parkdean, which operates 20 holiday parks, climbed just under 3% to 268.65p per share at mid-day in the wake of the announcement.

The offer represents a premium of 22.1% to the company’s closing price on October 11 2005, the close prior to Parkdean’s confirmation that it had been the subject of a takeover approach.

That initial approach came from UK property investor Grainger Trust, which later withdrew its interest in making a £135m (US$239.5m) offer. The approach, however, triggered the process leading to the agreed deal.

The offer is being managed by investment bank UBS on behalf of PD Parks, a vehicle set up by Alchemy to execute the buyout. The offer has been recommended by Parkdean directors not associated with the bid, who were advised by financial adviser Charles Stanley.

According to Thomson Financial, in 2005 Parkdean had sales of £84m and Ebitda of £20m.