Apollo Tourism & Leisure eyes Grey Nomads of UK after Camperco buy

Apollo Tourism & Leisure eyes Grey Nomads of UK after Camperco buy

• Mar 27 2018 at 11:01 AM
• Updated 35 mins ago

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Apollo Tourism has made its first acquisition in the UK and is targeting Grey Nomads and backpackers touring around the UK and Ireland. James McCormick
The $270 million Apollo Tourism & Leisure campervans and motorhomes company is now targeting Grey Nomads and backpackers in the UK and Ireland after a buyout of Camperco, which delivers a fleet of 200 vehicles and a springboard for European expansion.

Apollo chief executive Luke Trouchet said on Tuesday that Camperco was one of the largest independent motorhome rental operators in the UK and Ireland, and had been acquired for $8.2 million on a multiple of 7.5 times forecast earnings for calendar 2018.

Camperco operates the Bunk Campers brand which has outlets in Belfast, Dublin, Edinburgh, Glasgow, London, Birmingham and Leeds. It has 200 campervans and recreational vehicles in its fleet.

The acquisition delivers a physical presence in the UK and Ireland for Apollo for the first time, with Mr Trouchet saying it was a further step in the strategy of becoming a global player.

"This acquisition will further strengthen our position as a global operator of RVs and allow further expansion into Europe," Mr Trouchet said.

Mr Trouchet said the UK was a big market for caravans and motorhomes, with more than one million on the roads, and the tourism market in Ireland was expanding.

UK expansion
Apollo already has a fleet of 1,750 campervans, rental vehicles and Winnebagos in its fleet in the United States and Canada, 700 in New Zealand and 1,700 in its home market in Australia.

The founders of Camperco, Keith Charlton and Louise Corken, are staying on with the business under Apollo's ownership, and there are earn-out provisions in the transaction based on 2018 and 2019 earnings before interest and tax forecasts being achieved.

Apollo listed on the ASX in November, 2016 and at an issue price of $1. It reached $1.90 six weeks ago and is currently trading at around $1.51.

The company has also been accelerating a digital push with new technologyenabling people who rent campervans to be fully tapped into digital networks.

Apollo expanded into the digital economy a year ago when it became the biggest shareholder in Camplify, which uses a similar business model to online marketplace Airbnb to enable people to hire out a motorhome or a caravan from private owners anywhere in Australia.

Apollo started out in 1985 when Gus and Carolyn Trouchet began renting out a pop-top camper from their house in suburban Brisbane.

The Trouchet family remains a large shareholder in Apollo, which last month announced a first half profit for 2017-18 of $16 million, compared with $3.6 million a year earlier. Revenues more than doubled to $172 million.

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