Consumer & Leisure

Playnation is the leading supplier in the UK of amusement and entertainment machines. It supplies holiday parks, motorway services, bowling centres and airports, providing services to customers such as Butlins, Haven, Parkdean, Moto, Roadchef and Welcome Break.

Key Facts

Initial investment: 26/02/2013

Sector: Consumer & Leisure

Fund: Buyout Fund II

Status: Realised

Investment Highlights

  • Anthony Preston, the founder of Pets at Home, was appointed as non-executive chairman at completion.
  • Strengthened the board with the appointments of a chief operating officer and a retail director.
  • Acquired a smaller competitor which broadened the product portfolio and increased market share.
  • Worked with the management team to reorganise operational procedures, significantly increasing business efficiencies and reducing the cost base.
  • Completed the successful sale of Playnation to Austrian-based Novomatic in a transaction that delivered a 2.5x return.

Partnership Motivation

Playnation was one of the market leaders in the sector and we believed that it was well-positioned to take advantage of forecast economic growth. Our strategy for the business was both organic and acquisitive; we planned to win new customers and introduce new products to enable further growth. We also believed that there were future opportunities for selective bolt-on acquisitions.

Since building the business with Palatine in 2013, we have taken a firm hold of the sector and formed some strong partnerships across the UK with our clients. Having a private equity backer has given us the contacts and resources to develop a strong management team, and the potential for future growth is enormous.

Adam Hodges, CEO