A hefty price tag has reportedly surprised potential buyers of holiday camp chain Butlin's.
SomersetLive reports that the US private equity firm Blackstone, which currently owns Butlin's, is looking to sell it for around £700 million. The business is made up of three sites – at Minehead, Skegness and Bognor Regis.
Financial services firm Rothschild is handling the sale on Blackstone's behalf, according to The Sunday Times, and has been in talks with potential buyers. A source close to those discussions says Butlin's believes the asking price is fair based on profits of £65 million.
But those mulling the acquisition are reportedly "shocked" at the price tag. Any buyer is also likely to have to invest significantly to modernise Butlin's three camps, according to reports.
The Sunday Times report said: "One US private equity bidder said he had been shocked at the anticipated price for a business that comprises only three camps at Minehead, Skegness and Bognor Regis."
Blackstone is looking to offload Butlin's as is restructures its Bourne leisure parks arm. It also owns Haven and Warner Leisure Hotels.
Upcoming attractions at Butlin's in Minehead include weekend festivals with acts such as Paul Chuckle, Scouting For Girls, Boyzlife and Atomic Kitten. For more info on the resorts and other weekenders, please click here.
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