Leading Australian and New Zealand adventure tourism company, Experience Co (ASX:EXP) has acquired Australia’s leading operator of zip-lining and rope obstacle courses in tree canopies, Trees Adventure (TA).
The acquisition provides increased exposure to the domestic leisure market with attractive financials and growth potential and complements Experience Co’s existing portfolio exposure to international and domestic tourism.
The acquisition of TA continues Experience Co’s strategic reset and provides it with a strong foundation for future growth.
The acquisition of TA accelerates Experience Co’s COVID-19 recovery, improving the long-term quality of the EXP portfolio via increased exposure to domestic leisure markets, combined with near term tailwinds for the reopening of key metro leisure markets.
Under the agreement Experience Co will acquire 100% of the shares in TA for a total consideration of up to $46.9 million, consisting of initial consideration of $40.4 million and potential deferred payments of up to $6.5 million payable over the period to three years from completion.
To fund the acquisition of TA Experience Co is raising $55.0 million via a fully underwritten non-renounceable entitlement offer; and TA shareholders will be issued 26.9 million fully paid ordinary shares in EXP at an issue price of $0.33 per share (equivalent to the Issue Price under the Entitlement Offer).
The TA Management team led by co-founders Nicolas Dansin and Marc Flaster will remain with the business and Nicolas will join the EXP Executive Leadership Team as General Manager, Treetops Adventure. Under their employment agreements, Nicolas and his team are incentivised to grow the TA business over a 3-year period post completion.
CEO John O’Sullivan said, “The acquisition of TA continues the strategic reset of the Experience Co business that we commenced with the release of our Strategic Review in November 2019. With its market leading position, strong brand and growing customer base we are very excited about how this acquisition enhances the Experience Co group”. He continued “I am delighted that Nicolas Dansin and Marc Flaster and the TA Management Team will join Experience Co as part of this transaction.
They have built a great business over the last 14 years and we look forward to assisting Nicolas, Marc and the team continue this journey as part of Experience Co”. Nicolas Dansin, added “This is an exciting next step for the TA team which will provide us with the opportunity to explore new ideas and concepts and take our experiences to the next level. We have grown the company to more than 350 employees in 14 locations across Australia which receive over 400,000 visits per year.
This more than confirms our experiences resonate with local adrenaline seekers. We will continue to focus on growing that opportunity and taking a leadership role in terms of innovation, safety and design”.
