One of the world’s largest private equity funds, CVC Partners, is reportedly set to join the bidding this month for the acquisition of Center Parcs and its six resorts across Ireland and Britain. The holiday resort in Co Longford, which only opened in the summer of 2019, is included in the sale, which has a price tag of $4 billion (€3.7 billion). Sky News has reported that CVC Partners may make an indicative bid before the deadline later this month set by Brookfield Property Partners, the resorts company’s current equity fund owner.
CVC Partners is known for having billions of euros invested in companies worldwide, in which it controls outright or holds minority stakes. The private equity fund has stakes in companies that run Six Nations Rugby, United Rugby, Premiership Rugby, French soccer, and World Volleyball. It has also invested in British holiday parks operator Away Resorts and has major shareholdings in public relations firm Teneo, Swiss watchmaker Breitling, and retailer Authentic Brands.
Brookfield Property Partners put Center Parcs up for sale earlier this year and appointed Bank of America, Barclays, and Eastdil Secured to run the auction. The sale is expected to attract a number of bids from investment funds, including possibly from French-based Antin, according to the report. CVC Partners would likely make any bid through its long-term Strategic Opportunities fund. A spokesman for CVC declined to comment on the report.
Despite being forced to close by the pandemic, Center Parcs rebounded in its first year back with profits of just over €8 million on revenues of almost €58 million. The Irish resort, which employs more than 1,000 people in Co Longford, said in its most recent accounts that demand remained strong. With this strong financial performance, it is no surprise that Center Parcs has attracted interest from major private equity firms like CVC Partners.
If CVC Partners does acquire Center Parcs, it will add to its already impressive portfolio of companies. The private equity fund’s investment in the holiday resort operator would be a strategic move, given that the demand for staycations and domestic holidays has increased due to the pandemic. The acquisition would also provide CVC Partners with an opportunity to expand its presence in the leisure and hospitality industry, which has been hit hard by the pandemic.
Overall, the acquisition of Center Parcs by CVC Partners would be a significant development in the private equity industry and could have a major impact on the leisure and hospitality industry in Ireland and Britain. However, it remains to be seen whether CVC Partners will make a bid for the holiday resort operator and what the outcome of the auction will be. The sale of Center Parcs is one to watch in the coming weeks.