05/06/2021 | Press release | Distributed by Public on 05/05/2021 19:53
SeaLink Travel Group Limited (ASX:SLK) ('SeaLink') announces that today it has entered into binding agreements (subject to certain conditions precedent) to acquire 100% of the WA-based Go West Tours ('Go West') from the Vendors1 for an enterprise value of A$84.7 million2 plus an earn- out component of up to A$25.0 million. In addition, SeaLink3 will purchase strategic property assets4 comprising three depots for A$3.8 million (together the 'Acquisition').
The Acquisition including the purchase of the property assets is comprised as follows:
The implied transaction multiple based on up-front and deferred contingent consideration is 5.3x normalised LTM EBITDA7.
The Acquisition is expected to complete in early July 2021.
Completion of the Acquisition is subject to certain conditions precedent standard for transactions of this nature. Transaction costs of approximately A$2.0 million are expected to be incurred by SeaLink.
**Overview **
Established over 35 years ago, Go West is one of the largest specialist bus operators serving the resources sector in WA (charter, rental and tour vehicles) with a modern bus fleet of approximately 287 buses across 9 depots in WA and approximately 181 employees8.
Go West has enjoyed strong growth in recent years, winning multi-year contracts with leading mining companies and other regional services such as school bus transfers. Go West generated approximately A$46.2 million of revenue in the 12 months to 30 September 2020 and maintains an attractive tender pipeline of new contract opportunities in WA.
The key strategic and commercial rationale for the Acquisition includes:
'The Go West team has built a high-quality business focused on providing great service whilst maintaining high safety standards for their clients. Our intention is to retain the well-recognised and established Go West brand and continue to work with, and support, Go West's existing client base. We are very excited about the growth opportunities this acquisition provides SeaLink and look forward to welcoming all of Go West's employees to the Group.'
*Authorised for release byMr Clint Feuerherdt, Group Chief Executive Officer SeaLink Travel Group Limited *
Further information
For further information, please contact:
Clint Feuerherdt
Group Chief Executive Officer
+61 8 8202 8659
Andrew Muir
Chief Financial Officer
+61 8 8202 8693
About SeaLink Travel Group Limited (ASX:SLK)
SeaLink is Australia's largest integrated land and marine, tourism and public transport service provider with established international operations in London and Singapore.
It is one of Australia's most experienced and diverse multi-modal transport businesses, boasting performance-driven capabilities across ferry, bus and light rail.
SeaLink is made up of Australian marine and tourism operations and Transit Systems' domestic and international public bus and light rail transport operations.
SeaLink moves more than 206 million customers per year, has over 8,900 employees and operates approximately 3,500 buses and 118 vessels.