3 Sep 2012

THL to buy two camper van businesses

10:39 am on 3 September 2012

Tourism Holdings plans to take over two camper van hire businesses to reduce costs and build the company's scale.

The caravan and tourism operator is proposing to buy United Campervans and KEA Campers in a deal worth $69.5 million.

THLF needs approval from a 50% of its shareholders for the deal to go ahead.

If it does, it will lift the company's assets to nearly $350 million.

Chief executive Grant Webster says merging the businesses is the logical response to a challenging market.

Mr Webster says he is confident the deal will get the go-ahead.

Shareholders are to meet in Auckland next month and the merger is scheduled to be completed at the end of October.