Rental car operator, Jucy, says the approved merger of Apollo Tourism and Leisure (ATL) and Tourism Holdings Limited (THL) by the Australian Competition and Consumer Commission (ACCC) will advance its Trans-Tasman expansion plans by up to four years.
Concern voiced by competition watchdogs on both sides of the Tasman saw ATL agree to sell $45 million of its assets to Jucy, and it also secured the Star RV brand as part of the transaction.
The move will also see the creation of 30 new jobs and increase the number of Jucy rental offices around Australia to 11 allowing it to enter a new segment of the market.
Jucy chief executive Dan Alpe says the confirmation of the merger comes as the industry faces a shortage of rental stock and prices have reached record levels.
He says following the recent investment from Jucy’s majority shareholder Next Capital, the company will invest a total of $65 million to purchase 1300 new rental vehicles for the Australian and New Zealand markets, bringing its total fleet to 3000.
“Tourism infrastructure across both Australia and New Zealand was significantly depleted as a result of COVID’s impact on global travel,” Alpe says.
“Large numbers of motorhomes and campervans were sold onto the private market where strong domestic demand provided an opportunity for some operators to meet their immediate cashflow needs.
“Two years on, the borders have reopened, and we now are facing a peak summer season which will be characterised by record demand from international and domestic tourists – which cannot be met due to a significant shortfall of supply.
“With the merger set to provide a significant boost to our fleet, Jucy will be in a position to expand significantly faster across both sides of the Tasman than what would have been otherwise possible organically – given the pandemic-related challenges faced around sourcing new vehicles,” he says.
Alpe says in addition to acquiring 310 motorhomes across New Zealand and Australia, the company will also be able enter new locations – including Hobart, Darwin, Perth and Alice Springs.
“We are also securing the Star RV brand which has high recognition among international tourism wholesalers and will provide an opportunity for us to cross-sell other RV products in the markets we operate in,” he says.
“Overnight this will open up access to the 35-60 target market – and helps to provide the scale we need to continue to expand throughout Australasia,” he says.
Alpe says while the merger has received ACCC approval, it is subject to final confirmation by Australian Trade and Investment Commission (Austrade).
