CBPE Capital LLP (“CBPE”) is pleased to announce that it has invested in ABI Group Limited (“ABI”) alongside the existing management team, having acquired a majority stake from Legal and General Capital via LGV Capital (“LGV”). Terms of the transaction have not been disclosed.
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 400 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 has a thorough understanding of, and proven track record in the UK holiday parks market, having invested successfully in two of ABI’s customers, Park Resorts and Away Resorts, in recent years. CBPE is also an experienced and successful investor in the UK leisure sector as a whole, having invested well over £100m in the sector since 2000, achieving an average money multiple return of 2.7x. Recent leisure investments include The Original Bowling Company (2.4x money multiple return) and Côte Restaurants (2.9x money multiple return).
This is the first investment from CBPE Capital Fund IX.
Commenting on the investment, Tom Biddle, Director at CBPE said “We are delighted to have completed our investment in ABI, having known the business and management team well for several years.
“In ABI, we are backing an excellent management team with a proven track record and are investing in a business which is well positioned for future growth. The caravan holiday home market is an industry of scale which has shown resilience through financial cycles and delivered solid growth in recent years. ABI has a fantastic range of caravan holiday homes, a strong consumer following and a well-earned reputation for innovation, quality and service. The Company is also an important employer in East Yorkshire and we look forward to supporting the management team to continue to grow the business over the coming years.”
ABI’s Chief Executive, Mel Copper said: “The board of ABI is pleased to announce CBPE’s investment in ABI, alongside the Company’s management team. This is an excellent result for all parties.
“For our former partners at LGV it provides a successful cash exit and we are delighted that CBPE, who have a strong pedigree in the sector, have agreed to support the business in the next stage of its development. We would like to thank LGV for their support over the past four years and look forward to a successful relationship with our new investors.
“We look forward to continuing to develop the business and building on our position as one of the UK’s leading caravan holiday home manufacturers”.
CBPE’s investment in ABI was led by Tom Biddle and Mathew Hutchinson with support from Naveen Passi and Ben Lewis. Tom Biddle and Mathew Hutchinson will join the ABI Board.