PERTH, AUSTRALIA: Kelsian Group Limited (ASX:KLS) has entered into binding agreements to acquire Horizons West Bus and Coachlines together with ancillary assets from the Vendors for an enterprise value of A$23.4 million plus a contingent, deferred consideration and earn-out component of up to A$7.0 million.
In addition, Kelsian Group will purchase strategic property assets comprising two depots for A$16.7 million.
Kelsian Group will acquire Horizons West Bus and Coachlines through its wholly owned subsidiary WA Bus and Coachlines Pty Ltd, and will acquire the property assets through its wholly owned subsidiary, STG Properties Pty Ltd. The acquisition will be funded from existing cash reserves. The acquisition is expected to complete in late 2022/early 2023.
Established in 1985, Horizons West has a highly visible brand, and is well recognised in the Perth metropolitan area for bus hire and coach charter services provided to the education sector. Horizons West specialises in providing contracted and charter bus services to schools, universities and government with approximately 157 employees operating a bus fleet of 138 buses from two depots.
Horizons West currently operates 21 contracts for the Government of Western Australia and provides services to more than 400 schools and a university.
Following the acquisition, Kelsian will operate a portfolio of 1,367 buses and employ 1,982 people in Western Australia through the operating businesses of Swan Transit, Go West Tours and Horizons West. Kelsian’s intention is to continue to work with and focus on maintaining existing levels of service for Horizons West clients, as well as welcoming employees of Horizons West into the Kelsian Group.
Kelsian Group is Australia’s largest integrated multi-modal transport provider and tourism operator, with established bus operations in Singapore, London and the Channel Islands. The Group provides essential journeys for our customers by delivering safe and intelligent transport solutions designed to improve the sustainability and liveability of the communities.