Transaction

Clearwater advises Sykes Holiday Cottages on raising debt facilities to support the acquisition of Forest Holidays

Transaction

Sykes Holiday Cottages raised debt facilities from Ares to support the acquisition of Forest Holidays

Acquisition finance

Undisclosed

Role

Adviser to Sykes on raising debt facilities from Ares to support the acquisition of Forest Holidays

Sector

Consumer

Region

United Kingdom

Clearwater has advised Vitruvian Partners backed Sykes Holiday Cottages (Sykes), a holiday cottage rental agency on raising debt facilities to support the acquisition of Forest Holidays, an operator of environmentally sensitive cabins across the UK.

Headquartered in Chester, Sykes provides access to over 22,500 holiday homes, and is the UK’s fastest-growing holiday cottage rental agency.

Based in Derbyshire, Forest is the owner and operator cabins set across Britain’s forests. Since the mid-1970s, Forest Holidays has invested over €120m (£100m) into Britain’s forests.

The firm has 12 forest locations with many in National Parks and Areas of Outstanding Natural Beauty, including the Loch Lomond and Trossachs National Park in Scotland and opening later this year in the stunning Brecon Beacons National Park in Wales.

As part of the deal, Forest Holidays’ existing institutional investor group, which is led by Phoenix Equity Partners and includes LDC, will exit the business. Forestry England, Forestry and Land Scotland and Natural Resources Wales will divest their legacy minority stake.

The acquisition of Forest Holidays aims to accelerate Sykes' ambition to become a prominent UK-focused holiday group with a diverse range of unique rental accommodation. The two businesses will be run independently by their existing leadership teams under a newly formed parent company.

wide angle view beautiful large modern holiday home

As the UK’s leading provider of woodland accommodation, Forest Holidays is the perfect complement to our existing holiday cottage rental business, offering our respective customers an unrivalled choice and quality of accommodation across a variety of settings. We’ve been impressed by what Bruce McKendrick and his team have achieved and are excited by our common purpose with a focus on environment, local and rural communities at the core of our businesses. It's also a transformative acquisition for Sykes which creates a UK-focused multi-brand holiday group with market-leading technology, service and product. Looking ahead, we're ideally placed to fly the flag for UK tourism and showcase the very best our islands have to offer from coast to country.

Graham Donoghue, CEO, Sykes

Graham Donoghue and his team's commitment to a strong purpose is impressive and we are hugely excited by the opportunity to take this ambition forward together.

Bruce McKendrick, Chief Executive, Forest Holidays

It was a pleasure to work with the Sykes team to secure a funding package which enables the business to continue with its impressive growth. Sykes has been a longstanding client of Clearwater and it has been great to watch the business evolve over the years.

Tom Barnwell, Partner, Clearwater

Advisers

Transactions