A Scotland-focused caravan parks business has been sold amid a boom in demand for staycations.

Pears Partnership Capital acquired a majority stake in Verdant Leisure from the Palatine Private Equity business, in a deal its said took it into a market that is full of opportunity.

The value of the deal was not disclosed. However, it looks likely to have put a valuation of more than £10 million on Verdant. Palatine said the transaction allowed it to achieve a return of 3.7 times on the investment it made in Verdant.

READ MORE: Scottish caravan park operator returns to acquisition trail

Palatine bought into Verdant in 2016. It backed the company to acquire six additional sites, increasing its footprint to 10 locations, including seven in Scotland.

Verdant was established in 2010 by a team led by Graham Hodgson, who sold South Lakeland Caravan Parks for £125m in 2007. He formed Verdant in the belief it could grow quickly as a consolidator in a fragmented market.

HeraldScotland: Graham Hodgson pictured at Pease Bay Picture: Gordon TerrisGraham Hodgson pictured at Pease Bay Picture: Gordon Terris

Verdant acquired the Pease Bay site on the Berwickshire coast and Thurston Manor in East Lothian in 2010. The group went on to buy Viewfield Manor in Ayrshire, two sites in the Coldingham area in the Scottish Borders and a park at Queensberry Bay in Dumfriesshire. In January last year it bought the Erigmore Estate holiday park in Birnam in Perthshire.

The group has three sites in County Durham.

Mr Hodgson said the management team looked forward to continuing its growth strategy with the support of Pears Partnership Capital (PPC).

READ MORE: Scottish holiday park creates jobs amid multi-million expansion 

Mark Crowther, managing director of PPC, said: ”We are excited about working with the management team in a market that is full of opportunity.”

PPC acts on behalf of the family that owns the William Pears property group.

Palatine has sold its stake in Verdant to PPC and the company’s management. The deal is subject to regulatory approval.

Other private equity firms have shown interest in the UK holiday park sector in recent months.

In June CVC bought Away Resorts, which had nine sites in the UK at the time, in a £250m deal.