Caledonia pulls plug on Park Holidays sale following Brexit
Private equity firm Caledonia Investments has cancelled the £250 million-plus sale of caravan park operator Park Holidays following Britain's decision to quit the European Union.
Caledonia had hired PwC to help with the sale process but, since June 23, the group has opted to keep hold of the company as it expects its performance to rocket off the back of the vote.
"Caledonia pulled the sale because of Brexit. The thinking being that earnings will rise much faster because Brexit means that more and more people will opt for staycations.
"They'll be put off from going abroad because of the collapse in sterling and terror attacks across Europe," a person familiar with the matter told the Press Association.
The pound has tanked by 12% against the dollar and by 11% against the euro since the referendum result.
Park Holidays is Britain's fourth largest caravan operator and is set to see earnings rise to £35 million this year.
The mooted £250 million price tag represented a significant increase on the £172 million that Caledonia paid for the firm in 2013.
But now the private equity firm believes it can generate more from the business if it holds on to it and helps it grow through acquisitions.
Park Holidays boasts 25 holiday parks in the South of England and its performance has been buoyed by a rise staycations among Britons.
According to data from VisitEngland, £1.9 billion was spent on holiday parks and caravan trips in 2015.
All parties declined to comment.