Tourism Holdings in US$17m bear deal

Tourism Holdings (THL) has struck a deal to purchase a recreational vehicle rentals business in the States.

THL is set to buy Los Angeles based Road Bear in a deal worth US$17 million.

The Road Bear business is expected to contribute US$2.1 million of earnings before interest and tax to Tourism Holdings's result in the first 12 months of ownership.

THL chairman Keith Smith described the deal as a significant milestone for the company, whose core focus was now on rentals.

"Our existing rentals business has by far the largest footprint in its home
markets, along with a proven business model," Smith said.

"Road Bear provides an ideal opportunity to establish a beachhead in the USA, based on an operation that is profitable, a good fit with our existing business and has strong potential for expansion in the largest RV market in the world," he said.

Road Bear was established in 1980 and has a fleet of between 350 and 450 rental vehicles spread across Los Angeles, San Francisco, Denver, Las Vegas and New York.

The THL deal is expected to be settled by the end of this month.

- Susie Nordqvist