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30 September, 2022

Apollo’s THL merger to jump-start competitor’s Trans-Tasman expansion

By Alexandra Coulton

Apollo Tourism and Leisure’s proposed merger with THL is already having a knock-on effect, advancing the trans-Tasman expansion plans of a third major operator, Jucy, by up to four years.

Yesterday, the Australian Competition and Consumer Commission (ACCC) said it would not oppose the merger, provided Apollo divest a large proportion of its newest motorhome fleet.

Concern voiced by competition watchdogs on both sides of the Tasman has seen Apollo agree to sell $45 million of assets to Jucy.

The move will see the creation of over 30 new jobs and increase the number of Jucy rental offices around Australia to 11 – allowing them to enter a new segment of the market and marking a significant turnaround in the company’s fortunes since the onset of the pandemic.

Dan Alpe, CEO of Jucy, said the confirmation of the merger comes at a time when the industry faces a chronic shortage of rental stock and prices have reached record levels.

He said that following the recent investment from Jucy’s new majority shareholder Next Capital, the company will invest a total of $65 million to purchase 1,300 new rental vehicles for the Australian and New Zealand markets – bringing their total fleet to 3,000.

“Tourism infrastructure across both Australia and New Zealand has been significantly depleted as a result of COVID’s impact on global travel,” Alpe said.

“Large numbers of motorhomes and campervans were sold onto the private market where strong domestic demand provided an opportunity for some operators to meet their immediate cash flow needs.

“Two years on, the borders have reopened, and we now are facing a peak summer season which will be characterised by record demand from international and domestic tourists – which cannot be met due to a significant shortfall of supply.

“With the acquisition of hundreds of motorhomes from ATL, Jucy will be in a position to expand significantly faster across both sides of the Tasman than what would have been otherwise possible organically – given the pandemic-related challenges faced around sourcing new vehicles.”

Alpe said in addition to acquiring 310 motorhomes across Australia and New Zealand, the company will also be able enter new locations – including Hobart, Darwin, Perth and Alice Springs.

“As well as purchasing hundreds of motorhomes, we are also securing the Star RV brand,” he continued.

“This brand has high recognition among international tourism wholesalers and will provide an opportunity for us to cross-sell other RV products in the markets we operate in.

“Overnight this will open up access to the 35-60 target market – and helps to provide the scale we need to continue to expand throughout Australasia.”

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Apollo Tourism and Leisure australian competition and consumer commission Jucy motorhome thl