Aussie tourism company buys Wanaka skydiving firm

An Aussie tourism operator has deepened its roots in New Zealand by making another acquisition of a Kiwi tourism firm in Queenstown.

ASX-listed Skydive the Beach Group will acquire 100% of Skydive Wanaka, which was established in 1995, for $10.4 million – 4.5 times its 2016 financial year earnings before interest, taxes, depreciation and amortisation (ebitda).

The agreement, which is conditional on satisfactory due diligence, is expected to be completed on July 1.

Skydive’s shares were put in a trading halt on Thursday last week pending today’s announcement and now trades at 48c a share, having gained 33% so far this year.

The deal is expected to be “materially earnings accretive on an annualised basis.”

The company underwent capital raising, completed on Friday, to fund this acquisition.

It raised $A15 million ($NZ15.74 million) of which $A9.7 million is for the acquisition of Wanaka, $A2.4 million for a new aircraft, $A1.1 million for three luxury coaches and $A1.8 million for placement, due diligence, and working capital.

The company’s chief executive, Anthony Boucaut, says the acquisition strengthens Skydive’s position in New Zealand.  

“It adds more international assets as part of our goal to become the leading global adventure tourism company. We will continue to pursue growth opportunities in adventure tourism,” he says.  

Skydive already owns Queenstown-based Skydive NZone which was bought for $17 million in October last year.

Skydive says its acquisition of Wanaka will enhance its portfolio of assets, as well as helping it deliver a “specific strategic advantage, cost savings and synergies of scale as it is close to Skydive’s NZone operations in Queenstown.”

“Skydive is acquiring an additional high-capacity aircraft and three luxury coaches to transport Queenstown tandem jumpers to Wanaka so these jumps can be completed and not cancelled on poor weather days, and vice-versa where required,” the company says.

Skydive has affirmed its earning guidance for the 2016 financial year, expecting revenues of $A54.9 million as well as affirming its intentions to continue its dividend of about 1c a year, payable in October.