Blackstone sells Butlin’s back to its former owner in £300m deal 

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US private equity giant Blackstone is selling Butlin’s back to its former owner in a £300m deal

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Butlin’s was bought by its former owner just 19 months after it was acquired by US private equity giant Blackstone.

The Harris family have bought back the seaside resort group, which has camps in Skegness, Minehead and Bognor Regis, for £300 million.

The deal comes after last year’s family sale of Butlin’s parent company Bourne Leisure for £3 billion to Blackstone.

The Harris family have bought back Butlin's seaside resorts, with camps in Skegness, Minehead and Bognor Regis (pictured), for £300 million

The Harris family have bought back Butlin’s seaside resorts, with camps in Skegness, Minehead and Bognor Regis (pictured), for £300 million

Founded in the 1960s by billionaire entrepreneur Peter Harris, Bourne also operates the holiday businesses Haven and Warner Leisure, which remain owned by Blackstone.

Butlin’s was founded in 1936 by Billy Butlin. In its heyday, it operated out of nine locations across the UK and entertained a million people annually with glamorous granny competitions.

Bourne Leisure bought the company in 2000. Lionel Assant, Blackstone’s European head of private equity, said the investment group will reinvest the proceeds from the sale in Bourne.

The deal comes as an economic downturn and the cost of living has hit families’ finances, which could drive more people to Butlin’s.

But the Harris family will not own the Butlin properties, as they were sold to pension manager Universities Superannuation Scheme for £300m in July.

Private equity groups are increasingly eager to buy into Britain’s domestic holiday market.

In June last year, CVC Capital Partners bought Away Resorts for £250 million, followed by Aria Resorts in August.