SeaLink Travel Group Limited (ASX:SLK) entered into binding agreement to acquire Go West Tours (VIC) Pty Ltd from Stanley V. Haoust and the trustees of the DS & NM Haoust Family Trust, David Haoust and Naomi Haoust for approximately AUD 110 million on May 5, 2021. The consideration includes an upfront consideration of AUD 72.4 million payable on completion, deferred contingent consideration of AUD 16.1 million payable in equal tranches over two years provided current earnings levels are maintained in FY22 and FY23 and an earn-out consideration up to AUD 25 million based on exceeding specific financial hurdles over the period to 30 June 2023. The upfront and deferent consideration will be paid on cash-free and debt-free basis. Transaction costs of approximately AUD 2 million are expected to be incurred by SeaLink. In addition, SeaLink through its wholly owned subsidiary, STG Properties Pty Ltd will purchase strategic property assets comprising three depots from Shrewd Pty Ltd for AUD 3.8 million. The acquisition will be funded from existing cash reserves and existing undrawn senior debt facilities and is expected to be high single-digit EPS accretive in the first full year. Go West Tours (VIC) Pty Ltd reported revenue of $46.2 million (AUD 59.88444 million) in the year ending on September 30, 2020. The transaction is expected to complete in early July 2021. Tony Chong of Squire Patton Boggs acted as legal advisor to Go West Tours (VIC) Pty Ltd and Talbot Sayer Lawyers acted as legal advisor to SeaLink Travel Group Limited.
SeaLink Travel Group Limited (ASX:SLK) completed the acquisition of Go West Tours (VIC) Pty Ltd from Stanley V. Haoust and the trustees of the DS & NM Haoust Family Trust, David Haoust and Naomi Haoust on July 1, 2021.