Thrill is gone: Refinancing likely after Tussauds' £900m sale plans fail

Financiers behind Tussauds Group, the owner of Alton Towers and the eponymous waxworks, will recapitalise the business after attempts to sell it to another financial buyer collapsed at the weekend.

Charterhouse Development Capital, the private equity house that has owned Tussauds since 1998, yesterday said it would not be exploring a stock market flotation as an alternative to a sale. Instead it would be looking to put the group on a new financial footing by refinancing its existing debt and trying to expand the business over the next two years.

Two firm offers were received for the company of £750m-£800m from BC Partners and PAI, the French private equity group, representing a multiple of about 10 times the expected profits for 2003.

But Charterhouse was looking for considerably more, having seen initial estimates of up to £1bn for the business. It is thought Charterhouse was looking for at least £900m.

The company's 2002 results showed that turnover had increased 29.9 per cent to £178.4m and that earnings before interest, tax, depreciation and amortisation were £65.1m, an increase of 48.6 per cent. This represented a doubling of earnings from 2000 when they were £30.7m.