Tourism Holdings Limited (NZSE:THL) signed a share purchase agreement to acquire El Monte Rents Inc. from Schork family for NZD 92.6 million on December 21, 2016. Under the terms, consideration to be paid includes 3.4 million shares of Tourism Holdings and remaining consideration was funded through debt. In a related transaction, Tourism Holdings made a $6 million investment in Roadtrippers USA. The acquisition was funded by NZD 82.2 million of debt. The additional debt has been raised from Tourism Holdings’s existing lenders. The transaction is primarily debt funded by the issue of 3.38 million shares in Tourism Holdings. The number of Tourism Holdings shares to be issued is fixed. The business will be operated separately for at least the first 12 months, with a focus on fleet and operating efficiencies. Two of the vendors will remain with the business for a period of up to 12 months post acquisition to assist with transition. Ken Schork, Founder of El Monte Rents will retire. The transaction is only subject to closing conditions that Tourism Holdings expects to be satisfied prior to settlement. The acquisition is expected to be completed on January 6, 2017. Significant synergies in fleet and operations are expected to be realized within three years. The transaction will result in EPS accretion in FY20 of circa 18cps over FY16. The currency conversion has been done using oanda.com as on June 30, 2016. Mark Stuart of Minter Ellison Rudd Watts acted as legal advisor Tourism Holdings in the transaction. Tourism Holdings Limited (NZSE:THL) completed the acquisition of El Monte Rents Inc. from Schork family on January 6, 2017.