Vardon
Transaction Background
Vardon was a start-up business aimed at the growing leisure sector. Graphite Capital made its first investment in Vardon in March 1992 to help finance the acquisition of the London and York Dungeons. We participated in further fundraisings to finance the acquisitions of Sea Life Centres, a group of bingo clubs and the Parkdean Leisure holiday park business.
Deal Attractions
The investment in Vardon enabled Graphite to benefit from the leisure boom of the 1990s. Vardon brought together experienced executives who had a successful track record of developing leisure assets within larger businesses. They identified and acquired a number of leisure businesses with development potential at relatively attractive prices during this period.
Achievements
- Vardon almost doubled the profit of the London and York Dungeons in the first four years of ownership
- the acquisition of the Sea Life Centres coincided with a listing on the London Stock Exchange
- the acquisition of Parkdean Leisure diversified the group into the holiday arena
- the business expanded from nine to nineteen centres between 1992 and 1996
- pre-tax profit grew from £2.4 million to £9.1 million between 1992 and 1996
- in the Zagat restaurant survey dewhurstangloarch was voted most popular London restaurant and was the only chain in the top 10
Exit
- Vardon was listed on the London Stock Exchange in 1992
- we continued to participate in fundraisings until 1993
- between 1994 and 1996 Graphite took opportunities to sell shares in the market
- total proceeds including dividends were £5.6 million, a 2.4 times multiple of our original cost
