12.45pm
Tourism Holdings said today it had bought Paihia-based Fullers Bay of Islands Tourism Holdings Ltd for $22 million
The purchase from Marine Tourism Holdings (MTH), owned by entrepreneurs Chris Jacobs, Roger Dold and Peter Murphy, takes effect from December 1.
The business operates two brands - Fullers Bay of Islands and Awesome
Adventures. It runs four cruising operations including the Cape Brett Hole-in-the-Rock and Cream Trip cruises.
Other boat operations include the Russell/Paihia passenger ferry and vehicle ferries at Opua.
Fullers, which four years ago won New Zealand's supreme tourism award, also operates coach tours to Cape Reinga via Ninety Mile Beach.
THL managing director Dennis Pickup said Fullers was a great fit with THL's existing operations.
THL will pay in two instalments - $18m on settlement and $4m on or about May 31, 2005.
Funding for the acquisition will be from THL's debt.
Mr Pickup said the acquisition would increase reported ebita (earnings before interest tax and goodwill amortisation) by $3.3m for the remaining seven months of this financial year.
All existing Fullers Bay of Island staff would be retained under their current chief executive, Kit Nixon who will report to Mr Pickup.
THL shares were up 1c to $1.91 today, having trading between $1.37 and $1.98 in the last year.
- NZPA
