Private equity big KKR has achieved an agreement to buy the Dutch trip business Roompot from European personal equity firm PAI Associates, the corporations mentioned in a assertion.
Monetary phrases were not disclosed, but Reuters, citing a supply familiar with the transaction, mentioned Roompot was valued at $one.twelve billion.
The business is the second-premier operator of trip parks in Europe. It directly owns and operates 33 parks in the Netherlands, Germany, and Belgium and has exceptional agreements with additional than one hundred 3rd-occasion park operators.
PAI reportedly commenced on the lookout for a purchaser in Oct of past yr. In March, it planned to start a official sale course of action but known as that off thanks to the pandemic.
“KKR is investing in Roompot by our Main Investments strategy, which is our pool of money for lengthier-phrase investments, and we seem forward to doing the job with Jurgen and his crew in excess of the coming many years,” KKR director Joerg Metzner mentioned. “We have been on the lookout for a system to spend behind in the fragmented European holiday getaway parks current market for some time. Our help for Roompot and its management crew fits properly with our broader financial investment theme in the leisure space.”
Roompot has earnings of nearly €400 million ($448 million) on a few million company and 13 million overnight stays for every yr, in accordance to the corporations, but it has been strike challenging by the COVID-19 pandemic. Moody’s, this 7 days, reduce its credit rating outlook on the business to “negative,” citing a 50% drop in earnings in March, and a 70% drop in earnings in April, yr-in excess of-yr.
Moody’s mentioned Roompot has noticed a surge in need from domestic consumers in modern months, but the business was vulnerable to the threat of a second wave of infections.
KKR mentioned it would proceed to help Roompot’s recent management in its further more advancement into a “leading pan-European operator.”
PAI Associates purchased Roompot from Gilde for €600 million ($673 million) in 2016.