From The Boat Fund's latest quarterly report...

From The Boat Fund's latest quarterly report http://tbfinvest.com.au/tbf-september-2016-quarterly-report/:

Skydive the Beach Group Limited (SKB) announced the acquisition of Raging Thunder Pty Ltd described as a “leading multi-discipline adventure tourism company” operating out of Cairns in Far North Queensland. The acquisition came with a price tag of $15.45M at a multiple of 3.95x EBITDA and is expected to complete on 31 October 2016. The company announced the acquisition is expected to be “substantially EPS accretive in FY18”. In conjunction with the deal, SKB announced a $19.6M fully underwritten accelerated renounceable entitlement offer priced at 52 cents, which we participated in. The deal represents an extension of operating activities for SKB from skydiving into the wider adventure tourism market. Raging Thunder operates white water rafting, hot air ballooning, Great Barrier Reef, and canyoning tours across Far North Queensland.

We note in the announcement outlining the deal SKB stated a strategy to “ultimately become the largest adventure tourism group in the world”. Following the Raging Thunder transaction, SKB announced the acquisition of an aircraft and helicopter maintenance business in NZ for NZ$500,000 to help support their skydiving operations in New Zealand. The broader adventure tourism market is highly fragmented and there would appear to be a large opportunity for ongoing consolidation. The company has a conservative balance sheet and is operated by a founder CEO with plenty of skin in the game. We think the company continues to have a very bright future.