The independent holiday cottage rental agency said the investment comes in a bid to accelerate its ambition to become a UK-focused holiday group with a "diverse range" of accommodation options.

The businesses will be "united by a common purpose" to bring further benefits to nature, people and local communities.
 
As part of the acquisition, Forest Holidays’ existing institutional investor group, which is led by Phoenix Equity Partners and includes LDC, will realise their successful investment. Forestry England, Forestry and Land Scotland and Natural Resources Wales will divest their legacy minority stake.
 
The two businesses will be run independently by their existing leadership teams under a newly formed parent company.

Graham Donoghue, chief executive of Sykes, said: "As the UK’s leading provider of woodland accommodation, Forest Holidays is the perfect complement to our existing holiday cottage rental business, offering our respective customers an unrivalled choice and quality of accommodation across a variety of settings.

"We’ve been impressed by what Bruce McKendrick and his team have achieved and are excited by our common purpose with a focus on environment, local and rural communities at the core of our businesses."
 
The combined group will employ more than 1,700 people and is estimated to take over 2.65 million customers on holiday in 2022.