DB Capital Partners in holiday mood

In late November, Scottish & Newcastle announced the sale of its Center Parcs holiday village operation to DB Capital Partners, Deutsche Bank’s own-balance-sheet private equity operation, and French leisure group Pierre et Vacances in a GBP670 million transaction. The purchase price was less than originally expected when Scottish & Newcastle announced its intention to sell earlier in the year. Center Parcs posted PBIT of GBP58 million in the year to April 2000 and, at the end of its last financial year, had net operating assets of GBP800 million.

DB Capital is acquiring the UK arm of Center Parcs outright and will run the European business as a joint venture with Pierre et Vacances, which is rolling its existing holiday village business into the structure. Debt for the deal, which comprised separate streams of finance for the US and continental acquisitions, was provided by Deutsche Bank, Merrill Lynch, Credit Lyonnais and Natexis.