Australian travel company the Kelsian Group has entered into binding agreements for the sale of the companies and businesses forming its tourism portfolio to Journey Beyond for a total cash consideration of AU$161 million (US$114 million) on a cash and debt free basis, and subject to customary working capital adjustments.
Under the agreements, Journey Beyond will acquire 100 per cent of the shares in SeaLink Fraser Island, Captain Cook Cruises, SeaLink Marina, Avonward, SeaLink Tasmania, SeaLink Northern Territory, Vyscot, and assets of the businesses operating the Adelaide Sightseeing and SeaLink Whitsundays businesses.
The transaction is subject to approval by the Australian Competition and Consumer Commission and the Foreign Investment Review Board, change of control consents for key contracts and authorisations, as well as other customary conditions for a transaction of this nature.
Subject to the satisfaction of all conditions precedent, completion is expected to occur in the first half of FY2027.
Since 2023, Kelsian has faced criticism for reasons including stock underperformance, thin margins, debt issues, and high capital expenditures affecting free cash flow, as reported in local media.
In August 2024, Kelsian's share price experienced a one-day drop of 25 per cent following news of a AU$90 million (US$60 million) cost overrun related to the construction of ferry infrastructure on Kangaroo Island in South Australia. The resulting share price was the lowest for the company since May 2020, when the Covid-19 pandemic was still in its initial stages.
Between December 2023 and April 2025, the company's share price plunged from AU$7 (US$5) to AU$2.53 (US$1.79). During the same period, it incurred additional debt from its acquisition of US-based transit specialist All Aboard America Holdings the previous year.
