Merlin Tops Fastest Growing PE-Owned Companies in the UK
Global visitor attraction operator Merlin Entertainments today topped the Sunday Times Deloitte Buyout Track 100 – ‘Biggest 10’ list, which identifies the private equity-owned companies in the with the fastest growing profits (EBITDA) of more than £50m. This not only underlines the sustained and dramatic growth Merlin Entertainments has achieved in the 8 years following an APAX supported MBO from Vardon; but since these 2006 figures the company has doubled in size again – with two of the company’s most significant acquisitions to date not taken into account at all in this year’s listing – that of Gardaland in Italy in December 06; and The Tussauds Group in May 2007.
Merlin Entertainments is now the second largest visitor attraction operator in the world, with 52 attractions and 6 hotels, in 12 countries and across three continents. More than that, in 2007 the combined Group increased its visitor numbers from 30 to 32 million; and achieved double digit profit growth yet again - for the 7th year in succession.
Since 1999 Merlin has had two more successful PE partnerships in addition to APAX – with Hermes Private Equity in 2004; and from 2005 to present day with Blackstone. The relationship with Blackstone has taken Merlin from a capitalisation of £102m to over £2bn in just over two years, and included the acquisition of four LEGOLAND theme parks in Europe/USA; Gardaland in Italy; as well as Tussauds.
Most importantly, these strategic acquisitions have been underlined by consistent organic growth - outperforming all its competitors. This has been driven by the development of existing sites; the rollout of existing brands like Madame Tussauds into new locations; and the development of new brands like LEGOLAND Discovery Centres. 2008 is expected to continue this trend – with five new attractions due to open in Europe/USA; and a substantial investment programme already underway across the portfolio in new rides, attractions, shows and guest services.
Commenting, Chief Executive Nick Varney said: “Merlin has prospered under PE ownership, particularly with Blackstone with whom my team and I have an excellent working relationship. They have provided not simply investment, but also the business and strategic support we needed to build a world leading leisure organisation of which we are both proud; and which still has enormous potential for growth. I do not believe this could have been achieved in any other way.”