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Experience Co (ASX: EXP) is offloading its Wild Bush Luxury business for $5.1 million to Melbourne-based sustainable tourism group Intrepid Travel as the trans-Tasman adventure tourism company turns its attention to core businesses, including the Reef Unlimited, Skydive Australia and Skydive Wanaka operations.
The cash deal will give Intrepid Travel ownership of the Arkaba Homestead and Walk in South Australia, Bamurru Plains in Northern Territory and The Maria Island Walk in Tasmania.
It also includes the rights to develop more travel experiences in NSW and Tasmania.
The sale follows a strategic review by Experience Co late last year and a solid earnings performance by the group in the first quarter of FY25.
Experience Co says the sale allows the group to focus on existing operations that offer “superior scalability and return on capital potential”.
“Wild Bush Luxury has been a much-loved part of the Experience Co portfolio since 2021 however it is a boutique asset which we consider no longer core to our ongoing operations,” says Experience Co CEO John O’Sullivan.
“Intrepid Travel has a global reputation for sustainable tourism, a commitment to conservation, and deep expertise in delivering immersive, nature-based travel experiences -qualities that make Intrepid the right partner for Wild Bush Luxury in the longer term.
“I’d like to acknowledge and thank the Wild Bush Luxury team led by Ben Brown and we wish them well on their future adventures with Intrepid Travel.”
Intrepid Travel, which was founded in 1989 by Darrell Wade and Geoff Manchester, describes its business as the world’s largest adventure tour operator with a network of 31 destination management companies.
The company, which remains majority owned by the co-founders and staff, takes small groups to travel “the local way, on real-life experiences”.
“This acquisition is an important step in our ambition to lead low-impact, nature-based travel and invest in the future of Australian tourism," says Brett Mitchell, Intrepid Travel's managing director of Australia and New Zealand.
"Travellers are increasingly seeking meaningful ways to connect with land, wildlife and culture, and by expanding our portfolio with iconic guided walks and premium lodges, we’re offering experiences that immerse them in some of the country’s most extraordinary landscapes.”
The sale by Experience Co follows a strong first-quarter performance from the company which reported in October unaudited revenue and underlying EBITDA growth of 8 per cent and 17 respectively compared to a year earlier.
The result was driven by Adventure Experiences, largely Reef Unlimited, with Skydiving trading in line with seasonal winter trends.
Skydive Australia benefitted from more revenue per customer while Skydive New Zealand reported a 30 per cent increase in booking levels compared to a year earlier.
Reef Unlimited, which provides Great Barrier Reef and Far North Queensland adventures, also saw revenue increase 16 per cent in the September quarter while the Treetops Adventure business lifted revenue by 5 per cent.
Experience Co says the strategic review, which was completed earlier this year, reaffirmed the strength of its core adventure and tourism brands.
The review will lead the company to optimise its existing brands and experiences including the implementation of organic growth initiatives.
The company also plans to evaluate new acquisition opportunities that align with those strengths while divesting non-strategic assets such as Wild Bush Luxury.
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