Sea Life operator in £72.5m buyout

The company was bought from its shareholders, JP Morgan Partners and Apax Partners, with the backing of Hermes Private Equity.

Merlin said the sale reflected renewed interest in the leisure and attraction sector and bolstered its aggressive expansion programme.

Chief executive Nick Varney said: "Hermes Private Equity is a very suitable partner to build on the company's success and ensure its continued expansion.

"We are delighted to have been able to complete a deal that secures our growth strategy and believe this is positive news for everyone involved.

"Over the past five years, Apax and JP Morgan have been very supportive major shareholders at a time when we have restructured and expanded the business dramatically.

"We can now move ahead with great confidence and are looking forward to working with Hermes Private Equity during what I know will continue to be a dynamic and exciting time for the company." Merlin is now one of Europe's leading attraction operators and owner of the Dungeon brand in London, York and Edinburgh. Since January 1999 it has doubled its Dungeon chain to four sites - the latest in Hamburg, Germany.

The Sea Life brand has been relaunched with eight smaller UK sites sold and centres opened in Disneyland Paris, Dortmund and Berlin in Germany and Helsinki, Finland.

Merlin has 24 major attractions across Europe which receive a total of five million visitors every year.

In August, it will secure its position as the biggest attraction operator by opening its biggest Sea Life Centre yet in the Ruhr Valley, Germany.

Hermes Private Equity director Justin Ward said: "This is our second major deal since a new buyout fund was established.

"We are delighted to be working with the team at Merlin Entertainments at this important time in their development. This deal underlines our strategy of identifying and working with strong management teams with a clear vision of the future."

Thursday February 19, 2004