CBPE achieves a 3.0x return on ABI sale

CBPE Capital (CBPE) has sold its investment in ABI Holiday Homes (ABI) to the Company’s management team, with a minority equity investment from Pricoa Private Capital.  

Terms of the transaction are not disclosed but CBPE has achieved a money multiple return of 3.0x on its investment in ABI and an IRR of 36.9 per cent.

ABI is a leading manufacturer of caravan holiday homes and one of the most highly regarded and established brands in the caravan holiday home industry. The Company manufactures its caravan holiday homes in Beverley, East Yorkshire where it employs over 500 people. ABI is the second largest supplier into the UK market by volume and supplies all of the major holiday park groups, as well as smaller groups, independent parks and a number of dealerships in the UK market.
CBPE invested in ABI in May 2016 and has supported the management team during a period of growth and change that has seen the expansion of the Company’s manufacturing facilities, the entry into the twin lodge market and the development of the management team.
Richard Jones, CEO of ABI, says: “We are really proud of what we have achieved at ABI in the last three and a half years and I would like to thank CBPE for their insight and support over that period.
"We chose CBPE as an investor because we believed that they understood ABI, our market and, most importantly, our values as a business and a team. CBPE have been a great partner for ABI and together we have delivered strong financial growth, as well as significant investment into our facilities in Beverley. ABI today is a thriving business and, as a management team and shareholders, we are excited about what the future has in store.”
Tom Biddle, Partner at CBPE, says: “We are delighted to have supported management to build the superb business that ABI is today.
"ABI was the first investment in CBPE Fund IX and has consistently outperformed our expectations throughout the investment period. The strong return that ABI has delivered for our investors is testament to the hard work and dedication of ABI’s management team and its employees, to whom we are extremely grateful.
"On both a professional and a personal level, we are very pleased to be selling our investment to ABI’s management team, led by Richard Jones. They are rightly proud of their roles as custodians of the business and we look forward to watching them continue the next chapter of the ABI story.”
CBPE’s investment in ABI was led by Tom Biddle, with support from Mathew Hutchinson and Ben Lewis. CBPE was advised on the sale transaction by Duff & Phelps (corporate finance) and DLA (legal).
The investment in ABI continues CBPE’s strong track record of investing in the leisure sector. Previous CBPE leisure investments include Park Resorts and Away Resorts (two of the UK’s leading caravan park operators), The Original Bowling Company (branded Hollywood Bowl) and Côte Restaurants.