SeaLink Travel Group purchases Transit Systems Group

[CompoDelgroCurryman]

Thoughts ??

[BAMBAM]

SeaLink gets on the bus in $635m Transit Systems buy

https://www.theaustralian.com.au/busine ... f323ff8381

Bridget Carter
DataRoom Editor

3:07PM October 7, 2019

SeaLink gets on the bus in $635m Transit Systems buy

Listed tourism company SeaLink is set to unveil a major transformation on Tuesday, with the company buying Transit Systems for $635m and tapping the market for $150m in cash.

The $635m acquisition price that includes debt was revealed online by DataRoom on Monday, with the column also first reporting that Transit Systems chief executive Clint Feuerherdt would take the reins of SeaLink, marking the departure of current boss Jeff Ellison from the role.

SeaLink plans to sell shares at $3.50 each through Macquarie Capital, Ord Minnett and Taylor Collison. It remained in a trading halt on Monday, with its shares last traded at $3.91 each.

The transaction also includes a $63m earn-out consideration and will see some Transit Systems owners become substantial shareholders of SeaLink, which operates travel and tourist services with a fleet of vessels.

The deal is happening amid buoyant conditions for domestic tourism operators, with the low Australian dollar luring both international and domestic travellers to the country’s top holiday destinations.

Transit Systems consists of Transit Systems Australia and Tower Transit Group.

It is a passenger transport group operating buses.

It is Australia’s largest private operator of metropolitan public bus services and is an established international bus operator in London and Singapore.

The Brisbane-based company, founded by Lance Francis, Graham Leishman and Neil Smith operates about 3129 buses and 32 depots across Australia, London and Singapore on behalf of local and regional governments and authorities.

It has 16 major contracts in Australia, 23 in London and 31 routes under one contract in Singapore.

The multiple for the transaction is about 8.2 times EBITDA on an enterprise value basis and includes net synergies of between $4m and $4.6m.

The deal comes after SeaLink purchased Transit Systems marine operations in 2015.

For the 2019 financial year, SeaLink generated a 20 per cent lift in revenue to $251.3m and a 5.9 per cent increase in net profit to $23.4m. It operates under the brands SeaLink and Captain Cook Cruises.

Separately, a number of initial public offerings appear to be ramping up in the market, with PropertyGuru on Monday releasing a prospectus for its float and Onsite Rentals releasing its IPO analyst research.

Analysts at Macquarie Capital and Bank of America Merrill Lynch estimate Onsite Rentals to be worth up to $700m, or between 4.5 and 7 times its estimated annual EBITDA for the 2020 financial year of $99.1m.

The equipment leasing company has been owned by Next Capital and is now controlled by US debt investors, with the business leveraged at one times its EBITDA compared to 2.3 times on average for the industry.

Meanwhile, PropertyGuru told the market it would raise between $345m and $380.2m.

[CompoDelgroCurryman]

I know its probably above my pay scale however I've seen what's happened in nsw with companies having to tender for region's... Sureley the money is not the same as it was years ago. You can only screw drivers over and cut maintenance cost so much?

[kypros1992]

To date $6,250 donations to the Liberal party

Sources:
http://searchdecs.elections.nsw.gov.au/ ... 6-2688.pdf
http://searchdecs.elections.nsw.gov.au/ ... 6-2002.pdf

[Tim Williams]

I am surprised that no one has reported this:


________________________________________
TOURISM AND TRANSPORT company SeaLink Travel Group will purchase Transit Systems Group, Australia’s largest private operator of metropolitan public bus services - and with bus operations in London and Singapore, it’s reported recently.

Transit Systems CEO Clint Feuerherdt said both SeaLink and Transit Systems Group had developed market-leading positions in their respective sectors.
In a move set to make SeaLink a world-class juggernaut in multi-modal passenger transport solutions, the purchase price incorporates an enterprise value of AUD$635 million plus an earn-out component of up to AUD$63 million.
The acquisition will create Australia’s leading integrated land and marine passenger transport business with enhanced scale and capabilities to competitively deliver services under government contracts, the company states.
Transit Systems is Australia’s only multi-national public transport business, with metropolitan bus contracts in five states, as well as London and Singapore.

SeaLink is an Australian Securities Exchange (ASX) listed company with a market capitalisation of approximately AUD$375 million. This is expected to grow following SeaLink’s equity raising announced today on the Australian Securities Exchange and the completion of the acquisition, the companies state.
Once the sale has been completed, the combined group will have more than 8,000 employees and operate more than 3,200 buses and 78 ferries in NSW, Victoria, Queensland, South Australia, Tasmania, the Northern Territory, Western Australia, London and Singapore, Transit Systems confirms. The deal is the largest in SeaLink’s history and is expected to be finalised by early 2020.

[moa999]

It's in effect a reverse takeover, with Transit Systems being the larger group, and their CEO taking control.

[Tim Williams]

Not unusual in the corporate world.

[Bus Suggestions]

It was recorded in the Sydney discussion forum, I believe.

[Tim Williams]

My apologies, I didn't notice it!!

[Bus Suggestions]

Admin Now all in this thread

[boronia]

Not confined to Sydney, so better here.