SeaLink sets course to become world-class in multi-modal passenger transport solutions

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.

The purchase price incorporates an enterprise value of A$635 million plus an earn-out component of up to A$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.

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. The deal is the largest in SeaLink’s history and is expected to be finalised by early 2020.

As a result of the deal, Transit Systems Group Chief Executive Officer, Mr Clint Feuerherdt will replace the retiring SeaLink Chief Executive Officer, Mr Jeff Ellison.

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 $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 acquisition is being funded through a combination of cash and a new share issue to the Transit Systems Group vendors, to be approved by SeaLink shareholders. Following completion, the Transit Systems Group vendors will become substantial shareholders in SeaLink.

SeaLink’s current Chief Executive Officer, Jeff Ellison said, “the announcement today represents the start of SeaLink’s next phase of growth as an integrated multi-modal passenger services provider.”

“It will be transformational for us and provides us with the opportunity for significant international expansion using established businesses in Singapore and London.

“This has already opened the door for us to tender for new ferry operations in Singapore and London.”

Mr Feuerherdt said both SeaLink and Transit Systems Group had developed market leading positions in their respective sectors.

“SeaLink Travel Group and Transit Systems Group have a similar history, with a shared vision to create and deliver world-class transport solutions to passengers,” he said.

“The new arrangement brings together the nation’s best tourism transport company with a globally recognised public transport company, to deliver comprehensive and integrated network planning solutions with extensive, and unparalleled local network knowledge.

“I see significant opportunities for the combined group to target integrated multi-modal passenger transport contracts across the public and private sectors.”

Mr Ellison will remain in an executive position until the acquisition is finalised and will then stay on as a nonexecutive director.

About SeaLink Travel Group

SeaLink Travel Group is one of Australia’s most dynamic travel companies, bringing Australia’s best tourism and transport experiences to the world. With more than 1,600 passionate staff across the country, we deliver fantastic services to more than seven million customers annually. With a vessel fleet of 78 and a coach fleet of 76 vehicles, our Adelaide-based company has undergone a remarkable period of growth, emerging as a significant player on the national tourism and transport scene.

At SeaLink, we believe travel is about connecting people, sharing experiences and creating brilliant memories. Our operations extend across New South Wales, Queensland, the Northern Territory, Western Australia, South Australia and Tasmania, including:

▪ Cruises, ferry and charter services on Sydney Harbour, Swan River and on the Murray River

▪ Passenger, vehicle and freight ferry services from Kangaroo Island to the South Australian mainland, North Stradbroke Island and Southern Moreton Bay Islands to south-east Queensland and from Bruny Island to the Tasmanian mainland

▪ Resort accommodation, restaurants, touring and ferry services on Fraser Island, Queensland

▪ Day tours, extended touring and charter operations on Kangaroo Island and on the South Australia mainland

▪ Passenger ferry services in Townsville, Darwin and Perth

▪ Lunch and dinner cruises on the Swan River and on Sydney Harbour

▪ Ferry and barging services in south-east Queensland and Gladstone

▪ Exclusive 4WD foreign language adventure-based tours

▪ Retail travel agencies in Adelaide and Townsville

▪ Tour wholesaling to the travel trade

▪ Adventure, accommodation and bistro at Vivonne Bay, Kangaroo Island

SeaLink successfully listed on the Australian Securities Exchange in October 2013 (ASX:SLK).

Transit Systems

Transit Systems Group, which is comprised of Transit Systems Australia and Tower Transit Group, is a passenger transport group operating in the bus segment, moving ~344 M people globally each year. Transit Systems Group currently operates approximately ~3,129 buses across 40 contracts in Australia, London and Singapore on behalf regional Group overview governments and authorities. Transit Systems is Australia’s largest private operator of metropolitan public bus services.

Clint Feuerherdt

Group CEO, Clint Feuerherdt, BECom BCom (Hons). Clint has led the Transit Systems Group for the last 10 years, growing revenue by over 300% during this time. In his time with Transit Systems, he has been responsible for leading winning bids in the bus division, taking the business to the United Kingdom and growing a substantial ferry business. In 2015, Clint oversaw the sale of Transit Systems Marine to SeaLink Travel Group. Clint graduated from the University of Queensland with an Honours Degree in Commerce and was awarded the University Medal. Drawing on executive level experience with some of Australia’s largest corporate entities, Clint ensures that Transit Systems maintains its position as one of Australia’s leading passenger transport providers.

MEDIA CONTACTS

SeaLink Travel Group - Corporate Conversation, Peter Haynes 0431 862 422

Transit Systems Group - Square One PR, Katie Wilke

0411 771 469