What: Australia's largest marine tourism and transport company Sealink Travel Group Ltd (ASX: SLK) has announced what could be a company transforming deal to acquire Transit Systems Marine (TMS) for $125 million.
So What: TMS operates ferry services in both south-east Queensland and in Gladstone including the ferry service to Stradbroke Island. The acquisition will see Sealink's fleet number expand from 27 to 60 vessels.
Given the size of the business being acquired this is set to be a step-change for the company in terms of size and operations. For financial year 2015, TMS had turnover of approximately $90 million.
Now What: With the stock exiting a two day trading halt which saw Sealink raise capital at a price of $2.50 per share, investors are obviously looking favourably on the deal with the shares jumping over 12% and touching a fresh record high of $3.20 per share.
Sealink's share price has now gained 104% since first trading on the ASX after its initial public offering (IPO) in October 2013.
Having reported a solid profit result for the full year ending June 30, the growth for the group looks set to continue in the current financial year.
Like some of its tourism exposed peers such as Ardent Leisure Group (ASX: AAD), Village Roadshow Ltd (ASX: VRL) and Mantra Group Ltd (ASX: MTR), Sealink is also set to benefit from the tailwind of a weakening Australian dollar which should entice more foreign tourists to Australia and also encourage Australians to holiday domestically rather than abroad.
With the economy in general looking lethargic, the tourism and leisure sectors remain a bright spot for investors seeking growth.
