Tuesday, June 3, 2014

Carlyle Going after European Trailer Parks


FT reported:

US private equity investor Carlyle has entered into exclusive negotiations to take control of Homair Vacances, a French operator of camping and mobile homes that seeks to expand across southern Europe.

The Washington-based buyout house is buying a 75 per cent stake in the Paris-listed company from French firm Montefiore Investment, which will be reinvesting as a minority shareholder. 

The move comes after Homair on Monday said it had agreed to buy its main competitor, Eurocamp, from UK-based Holidaybreak to expand in Europe in a deal that will double its size. 

The combined group will operate more than 15,000 mobile homes across nearly 300 campsites, mainly in France, Italy and Spain. It will generate about €180m in revenues.

The logic for private equity underwriters (PEU's) in investing in trailer parks is:

An increasing number of customers have been drawn to mobile homes and self-catering holidays as they sought budget holidays during the downturn.
As PEU's decimate the middle class in Europe, as they did in the U.S., demand for budget holidays should soar.  Whatever money the people have left, PEU's want it.  It's the PEU way.