Rental RV big guns to join forces

Two of the biggest RV rental operators in Australia and New Zealand are planning to join forces.

ASX-listed Apollo Tourism & Leisure is planning a merger with Tourism Holdings Limited, which is listed on the New Zealand stock exchange.

According to a statement, the proposed merger is designed to "expand their respective global recreational vehicle networks that includes the rental, sales, manufacturing and service of RVs".

In Australia, Apollo builds composite caravans and motorhomes under brand names including Coromal, Windsor and Winnebago at its Brisbane factory. It also distributes Euro built Adria RVs, has a stake in the RV sharing platform Camplify and owns a number of caravan dealerships, including  Queensland’s Kratzmanns and the Sydney RV Group.

Both Apollo and THL own and operate large rental RV fleets in Australia, New Zealand, USA, Europe and the UK.

Apollo's Managing Director Luke Trouchet said the two businesses have similar operations and like-minded cultures, and both strongly believe in the potential of the global RV market.

"The proposed merger would give us a better platform to meet the ongoing impacts of COVID-19, continue to offer our guests the best combination of products, services and prices possible and better leverage the re-opening of global travel," he said.

"With a more diverse portfolio of brands, strong presences in the key RV travel markets and a more robust balance sheet, the combined business will be better able to capitalise on near-term growth opportunities as borders re-open and cross-border tourism begins to return to pre-pandemic levels." 

The proposed merger remains subject to approval by Apollo shareholders, and if it goes ahead Apollo would own 25 percent of the merged company.