RV SPECIALIST APOLLO ACCELERATES ACQUISITION GROWTH, ANNOUNCES PROFIT UPGRADE
Written on the 9 May 2017 by Ben Hall
RECREATIONAL vehicle company Apollo Tourism & Leisure (ASX: ATL) has announced plans for two major acquisitions in Canada and Australia to be funded with a $40 million capital raising.
The Brisbane-based company will buy the TSX-listed CanaDream, one of the largest RV rental and sales companies in Canada, to boost its footprint in the North American rental market and Australian retailer of new and used caravans and motorhomes, Kratzmanns.
"Since listing in November 2016, we have identified and executed opportunities to support our growth plans and these investments will both make important contributions to Apollo's business," says managing director and CEO Luke Trouchet.
"CanaDream is a major strategic acquisition that will support Apollo's growth plans in North America and expand our leadership to include a highly capable senior management team with deep experience in the North American RV industry.
"Kratzmanns contributes to Apollo's strategy of becoming a leading player in the Australian RV retail market and further expands our retail sales network across the country."
The company will fund the acquisitions with an underwritten four-for-17 non-renounceable rights issue at $1.18 a share to raise $40.3 million, which would be a 9.9 per cent discount to its closing price on Friday.
Apollo Tourism & Leisure also announced it is on track to beat its FY17 NPAT forecast of $12.4 million by between five and 10 per cent thanks to strong forward rental bookings across all markets and continued growth in new vehicle sales in Australia and New Zealand.
Since listing in November 2016, the company continues to move towards its plan to become Australia's leading player in the RV market thanks to some strategic acquisitions.
Just two months ago, the market reacted well to its investment in Camplify, an online RV and caravan sharing community that connects owners with potential renters.
Shares in ATL were in a trading halt on Monday and opened three and half per cent higher on Tuesday at $1.355.
Business News Australia
Author: Ben Hall