South Australian-based SeaLink Travel Group has announced a $125 million acquisition of Queensland’s Transit Systems Marine and the company’s 33 boats.
The purchase will make SeaLink, which has been connecting Kangaroo Island to the South Australian mainland for 26 years, Australia’s largest marine transport and tourism business.
SeaLink Managing Director Jeff Ellison said the acquisition reinforced Sealink’s position as the leading provider of marine ferry services in Australia.
“It provides us with a new growth engine as it will significantly enhance our ability to compete for large scale marine transport business opportunities in Australia and overseas,” he said.
Adelaide law firm Kain C+C advised Sealink on the purchase.
“This acquisition forms a key part of SeaLink’s business strategy to seek domestic growth opportunities in the marine transport and tourism sectors. It will significantly increase SeaLink’s scale and broaden its expertise,” said James Burchnall, Kain C+C Director and leader of the deal team.
The acquisition will be partly funded by a share placement of approximately $40 million to investors and a share purchase plan that could raise up to $16.9 million. The Kain C+C team also advised on the capital raising, which is expected to see SeaLink’s market capitalisation increase to more than $250 million.
The deal will see SeaLink add to and diversify its national tourism and travel portfolio, which currently includes commercial and passenger ferry routes to Kangaroo Island, Magnetic Island and Palm Island in Queensland, the Tiwi Islands in Northern Territory and the iconic Captain Cook Cruises in Sydney Harbour.
SeaLink is a Brand South Australia member.