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Fullers Ferries - Source: ONE News
Infratil subsidiary NZ Bus has sold Auckland ferry company Fullers Ferries for $40 million.
NZ Bus, New Zealand's largest public transport operator, has sold the ferry business to Souter Holdings, run by British transport entrepreneur Brian Souter.
Infratil says since it purchased Fullers in November 2005 the ferry service has grown in profitability and patronage, and two new ferries have been acquired.
"Infratil have said that they're focusing on their land based investments in terms of infrastructure, and it [Fullers] was a bit of an add-on, so they've organised a trade sale within the market which looks neutral, if not a little bit positive," says market analyst Alexandra Dalzell.
In the year to 31 March 2009 Fullers Ferries is forecast to have EBITDAF earnings of $5 million.
The sale will be settled on April 8 2009.
Fullers' buyer Souter Holdings runs the Howick and Eastern buses in Auckland and has a 74% stake in Mana Coachlines in Wellington.
Souter Holdings executive chair Bill Rae says the company is delighted about the purchase and is looking forward to growing and investing in the Fullers business.
In 2005 Infratil purchased the New Zealand public transport interests of Stagecoach, founded by Souter, for $252 million.
