CapMan and Procurator Oy are to sell their stakes in Finnish leisure travel service company Holiday Club Finland to London & Regional Properties (L&R). The transaction value is approximately E120m.
The exit will impact CapMan Plc’s result for 2005 by approximately E0.3m as a result of carried interest income received from Finnventure Fund I.
Finnventure Fund IV managed/advised by CapMan invested in Holiday Club Finland in 1998. Other CapMan funds (Finnventure I, Finnventure V, Finnmezzanine II and Finnmezzanine III) joined the investment in the additional financing rounds between years 1999-2002 funding the growth of the company. The funds’ combined ownership in the company was approximately 31%. The total value invested in the business is undisclosed.
During the investment period the company’s business has expanded steadily through acquisitions. The Holiday Club Finland chain consists of six spa hotels and nine other holiday resorts. Holiday Club has also opened a spa hotel Sweden, which was opened in November 2004. The group’s turnover in 2004 was E76m and it employs 450 people.
Holiday Club Finland is the last portfolio company in Finnventure Fund I. The fund will be terminated by the end of year 2005.