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Adventure tourism operator Experience Co (ASX: EXP) is selling its Australian and New Zealand skydive and aviation businesses to privately held New Zealand company Inflite Group in a deal that will create a major new trans-Tasman aviation tourism venture with an enterprise value of $110 million.
Under the terms of the agreement, Experience Co's skydive and aviation assets will be combined with Inflite's operations into a newly formed New Zealand holding company, referred to as MergeCo.
Experience Co will receive a total of $65 million, comprising $41 million in upfront cash, a $5 million vendor note with interest capitalised quarterly and repaid after five years, and a 32.5 per cent equity stake in MergeCo valued at $19 million.
Shareholders of Inflite, which operates scenic flights, ski planes, helicopters, charters, skydiving and glacier guiding across New Zealand, will hold the remaining 67.5 per cent of the merged entity.
"(Infinite's) established brands, complementary product mix and long-standing operational track record position it as a natural strategic partner for EXP's Australian and New Zealand skydive and aviation businesses," says Experience Co.
The deal follows a strategic review of Experience Co's Skydive Australia business unit first flagged during its half-year results in February, which found the segment was performing below expectations.
The company has cited inconsistent international visitation recovery, protected industrial action, and inflationary cost pressures as key headwinds dragging on the division.
Year-to-date skydiving revenue for FY26 stood at $49.7 million at the time of that review, down 1 per cent on the prior corresponding period.
Experience Co had already consolidated its Victorian drop zones in response to the challenging conditions.
"The proposed transaction has emerged as an attractive opportunity from EXP's strategic review of its Skydive Australia business unit," says Experience Co.
"Should the proposed transaction proceed, it would create a leading integrated aviation tourism platform across Australia and New Zealand."
Completion of the transaction remains subject to a number of conditions, including due diligence by both parties, financier approvals, execution of binding documentation, and shareholder and regulatory approvals.
Experience Co cautions there is no certainty the transaction will proceed.
The company has flagged its intention to use net proceeds from the deal to pay down debt, which stood at $13.3 million at the end of December, and reinvest in its retained businesses.
Experience Co's retained portfolio following any divestment will include its reef and rainforest tourism operations in North Queensland, including its Skyrail Rainforest Cableway and Great Barrier Reef experiences, as well as its Raging Thunder Adventures and Treetops brands.
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