This article appeared in the Financial Times on June 18, 2020

KKR has agreed to buy Dutch holiday parks company Roompot, in a 1bn deal that marks the latest in a spree of acquisitions by the US private equity group during the pandemic. The buyout firm will

acquire Roompot, which runs campsites and holiday homes in Denmark, the Netherlands, Germany, Belgium, France and Spain, from Paris-based private equity firm PAl Partners, the companies said. The

deal comes even as Roompot has been hit hard by the lockdowns and travel restrictions imposed since the coronavirus pandemic began. Revenues were down about 50 per cent in March and 70 per cent in

April compared with the same time last year, according to Moody's, which this week lowered its credit outlook on the company to negative. Moody's said Roompot was vulnerable to the fallout from a

possible second wave of coronavirus infections and a prolonged recession, though it had benefited from a "surge in demand" from domestic customers in recent weeks. "There has been a trend towards

staycation [and] this crisis is accelerating that because of the limitations on international travel and people being worried about airports and flights," said Daan Knottenbelt, partner and head of the

Benelux region at KKR which has $207bn in assets under management. Holiday parks have an "incredible degree of resilience through recessionary times because people trade down in terms of their

discretionary spending" he said. The Dutch company generated 82m in adjusted earnings before interest, tax, depreciation and amortisation in 2019, according to Moody's, indicating a deal price of more

than 12 times earnings despite the uncertain outlook. Private equity steps in where others fear to tread during pandemic Roompot had planned to launch a formal sale process in March, but called it off

when the pandemic hit so executives could focus on responding to the crisis with new safety and social-distancing measures. However, KKR approached PAl Partners with a "positive view on the asset" and

was "ready to do a deal in a very [quick] manner" said Gaelle d'Engremont, a partner at PAl, which has owned Roompot since 2016. The sale had been expected to fetch about 1bn last autumn, before the

pandemic roiled markets, according to local news reports at the time. "We didn't accept a discount because of the crisis, because we believe going forward the business will not be affected," said Ms

d'Engremont. KKR has been the most active private equity firm worldwide since the crisis began, investing in deals worth at least $16.9bn since the beginning of March, according to data from Refinitiv. It is

investing from a fund that specialises in longer-term deals where it can own a business for 10 years or more. Roompot's sites are open this summer, including playgrounds, swimming pools and even facial

treatments, according to its website, and it has introduced disinfectant stations and limits on the numbers of people using facilities.

1. What is the article about? Who is the seller?

2. Does it make sense for a private equity firm to buy a company (or assets) from another private equity firm?

3. Based on the article, what are the possible motivations behind this acquisition?

4. The article says that KKR is investing from a fund that specializes in long-term deals of more than 10 years. Is it a normal length for PE investments? Explain.