EAST Lothian-based leisure entrepreneur Graham Hodgson has expanded his latest caravan park empire by acquiring a business in Northumberland in a multi-million pound deal.
The Verdant Leisure business run by Mr Hogdson has bought Riverside Country Park in Wooler in the company's first move south of the Border.
The purchase comes four months after Verdant bought the Viewfield Manor Leisure Park in Ayrshire. It underlines Mr Hodgson's ambition to build a major group of caravan parks run from Scotland.
Backed by the RJD Partners private equity business, Mr Hodgson hopes to repeat the success he enjoyed in his first foray into the sector in the north-west of England.
He achieved renown after selling South Lakeland Caravan Parks for £125 million in 2007, 18 months after leading a £95m management buyout of the business.
The purchase of Riverside Country Park represents a notable vote of confidence in the prospects for the leisure industry at a time when consumer spending is under pressure.
While the economic slowdown has posed challenges for caravan park operators, Verdant had been trading ahead of expectations.
"We have enjoyed strong trading during the last 15 months, despite the bleak economy, and are excited by the opportunities that lie ahead," said Mr Hodgson.
Last month the businessman said although demand for short breaks has been under pressure sales of caravans and lodges have been holding up well.
Verdant has now amassed a portfolio of four caravan parks, including two in East Lothian that it bought in 2010.
Mr Hodgson believes the experience his team gained at South Lakeland Caravan Parks can be used to help boost returns from Vedant's parks.
"Our focus is on acquiring already thriving businesses that we can add value to through operational improvements, physical development and investment in customer services and marketing," he said.
"Riverside is a welcome addition to our portfolio and is a good fit with our brand."
Frank Bulman, a partner at RJD Partners, said: "The management team has already demonstrated an ability to add value to the assets they acquire, achieving operational improvements in the three existing parks. Riverside is an excellent fit with the business and will enable Verdant to reap the benefits of scale and operational synergies."
The value of the deal was not disclosed.
Last month, Mr Hodgson said Verdant was poised to complete a bigger deal than the Viewfield Manor purchase.
That was reported to have been a multi-million pound deal.
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