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Peer-to-peer recreational vehicle sharing platform Camplify (ASX: CHL) is poised to expand its market position in Europe through a $47.6 million acquisition of Germany’s PaulCamper.
The acquisition, accompanied by an $8.5 million capital raising by Camplify to fund further growth initiatives, will position the Australian company as a major global player in the RV rental market, doubling its size by bringing on board PaulCamper’s fleet of 12,000 RVs in Europe.
PaulCamper, founded in 2013 by Dirk Fehse, has a foothold in Germany, the Netherlands and Austria, which will add to Camplify’s existing operations in Australia, New Zealand, Spain and the UK.
Camplify will fund the deal via a $1.8 million cash payment and the issue of $45.8 million in Camplify shares to PaulCamper at a price of $1.9624 per share.
“This acquisition delivers Camplify a strategic and targeted growth opportunity in Europe, securing the largest key market, Germany,” says Camplify CEO and founder Justin Hales.
“It provides Camplify with an excellent team of digital marketplace professionals based in Europe, allowing us as a group to optimise and look for expansion opportunities.
“I am extremely impressed by the PaulCamper operation, and excited by the ability these transactions provide us to build our business and accelerate our pathway towards cashflow positive position and profitability with significant ability to grow revenue through vertically integrated products.”
PaulCamper CEO Fehse, who will stay on as head of the European operations, has revealed that the merger of the companies has been in the wings for the past three years.
“In 2019 Justin and myself met and discussed our shared vision and desire to create a community of RV owners globally who have the passion to share their RVs,” Fehse says.
“As a business that has secured key markets in Europe, PaulCamper is pleased to take this next step and be a part of a global public company on the journey with Camplify.”
Camplify says the acquisition is EBITDA accretive at 28.9 per cent before accounting for synergies on a pro-forma basis for FY22.
The company is raising $8.5 million via a two-tranche placement, at a discounted issue price of $1.70 a share, with the funds to be used to expand Camplify’s insurance division and to assist in delivering synergies from the PaulCamper acquisition.
A further $2 million capital raising will be offered to shareholders via a share purchase plan once the acquisition is approved by shareholders.
Camplify posted an $8.2 million loss in FY22, despite a 75 per cent increase in revenue. The company says the PaulCamper acquisition is expected to accelerate the company’s pathway to profitability.
Camplify shares were trading 9.9 per cent higher at $2.21 at 2.22pm AEDT.
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