The family that founded one of Britain’s largest entertainment empires are finalizing a deal worth more than £300 million to regain control of Butlin’s, the holiday camp chain.
Sky News has learned that a car connected to the Harris family, the company that helped found Bourne Leisure in the 1960s, is about to conclude a transaction with Blackstone, the group’s current owner.
It is unclear whether Paul Harris, the family member understood to be the head of the deal, has arranged any outside financing to support it.
A deal, which could be struck as soon as next week, would bring the total proceeds from the Butlin’s sale to more than £600m – a remarkable achievement in an economy ravaged by inflation and predict a prolonged recession.
The Harris family’s interested attempt to buy Butlin’s comes 18 months after they sold Bourne Leisure to Blackstone, the giant US private equity firm, for more than £3 billion.
As part of that deal, Blackstone said at the time that the founding family of Harris, Cook and Allen were reinvesting in Bourne Leisure, though it’s unclear how large of a stake the trio currently owns.
A chain auction of three holiday camps has been underway since earlier this year, attracting interest from financial bidders including Bain Capital, Epiris, TDR Capital and Guy Hands’ Terra Firma Capital Partners.
Bourne Leisure herself has owned Butlin’s since 2000, when it acquired the business and its sister brands Haven Holidays and Warner Hotels in a £600 million deal.
Last month, the UK’s largest private pension fund, the Universities Superannuation Scheme (USS), confirmed a Sky News report that it had bought Butlin’s underlying real estate asset for £300m.
Sell its operating property notably due to the number of failed auctions triggered by turmoil in global debt financing markets.
Among the deals that have been drawn are the auctions of Parkdean Resorts, another major entertainment group, and Boots, Britain’s largest street chemist.
Many other sales processes have been put on hold as companies grapple with one of the harshest operating environments in decades.
Butlin’s was founded by the eponymous founder, Billy Butlin, in 1936, and quickly became one of the most popular holiday destinations for Britons to stay.
According to the brand’s official history, Mr Butlin “felt sorry for the families staying in dull guest houses with nothing much to do” during a trip to Barry Island.
During its heyday, Butlin’s operated from nine locations across the UK, entertaining a million tourists each year with its supple knee and glamorous granny contests.
The brand has become such a permanent part of the British popular consciousness that it provided the inspiration for Hi-de-Hi!, the BBC sitcom.
Its fortunes waned with the explosive growth of opportunities for Britons to holiday abroad, but have enjoyed a resurgence as the pandemic has fueled a domestic holiday boom.
Butlin’s locations are in Skegness, Minehead in Somerset and Bognor Regis, a traditional seaside town near the South Downs National Park.
Rothschild, the investment banker, is advising Blackstone on the sale of Butlin.
Blackstone declined to comment on Saturday, while the Harris family could not be reached for comment.
