SEALINK Travel Group has today announced the transformational $635 million acquisition of bus operator Transit Systems, with the huge deal also set to see the departure of long-time SeaLink CEO Jeff Ellison.
SeaLink placed its shares into a trading halt yesterday morning prior to the purchase today, which includes a $150m capital raising and an earn-out component of up to $63 million.
Transit Systems is a major supplier of transport solutions to governments, operating fleets of buses in Perth, Adelaide, Darwin, Sydney and Melbourne as well as several overseas markets.
SeaLink and Transit Systems have worked together in the past, with SeaLink purchasing the commuter ferry operations operated by Transit Systems in Moreton Bay and Gladstone four years ago (TD 18 Sep 2015).
Ellison, who will leave the company after 21 years as CEO, will be replaced by Transit Systems CEO Clint Feuerherdt.
The deal will see some of the owners of Transit Systems become substantial SeaLink shareholders, with a share placement at $3.50 seeing the transaction take place at a significant discount to SeaLink’s $3.91 trading price yesterday.
Transit Systems operates more than 3,000 buses in 32 depots globally, while SeaLink’s brands also include Captain Cook Cruises and Kingfisher Bay Resort.
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Source: traveldaily