thl’s NZ$6.8M Gain from UK & Ireland Sale Highlights Strategic Shift
Tourism Holdings Limited has agreed to sell its UK & Ireland operations to Indie Campers for NZ$8 million, aiming to streamline its portfolio and reduce debt. The deal is expected to deliver a one-off gain but will impact earnings in the short term.
- Sale of UK & Ireland assets to Indie Campers for NZ$8 million
- Expected one-off gain of NZ$6.8 million from the transaction
- Proceeds earmarked for debt repayment to improve capital efficiency
- Three-year non-compete clause included in the deal
- Underlying EBIT to be negatively affected by NZ$1.1 million in H2 FY26
Strategic Divestment in UK & Ireland
Tourism Holdings Limited (thl), the global leader in recreational vehicle rentals, has announced a conditional agreement to sell its UK and Ireland business assets to Indie Campers, a Portugal-based RV rental company. The deal, valued at NZ$8 million (£3.5 million), marks a significant step in thl’s ongoing strategy to optimise its portfolio and capital allocation.
The sale aligns with thl’s growth roadmap outlined in August 2025, reflecting a strategic decision to release capital from regions where scale and performance have not met expectations. Despite the long-term potential seen in the UK & Ireland markets, the division has underperformed in recent years, prompting this divestment.
Financial Impact and Deal Terms
thl expects the transaction to generate a one-off gain of up to NZ$6.8 million (£3.0 million), primarily representing goodwill net of transaction and other committed costs. The proceeds are intended to be used for debt repayment, signalling a disciplined approach to capital management and a focus on improving the group’s Return on Funds Employed (ROFE).
However, the timing of the sale will negatively impact underlying earnings before interest and tax (EBIT) in the second half of fiscal year 2026 by approximately NZ$1.1 million. This reflects the loss of high-season earnings in the crucial Q4 period for the UK & Ireland operations.
The deal includes several notable conditions, landlord consent is required for the assignment of leases on depots, which thl and Indie Campers will pursue promptly. Additionally, thl will underwrite a 15% vehicle sales margin on future resale of the fleet sold, capped at the goodwill value, a figure below thl’s average retail margin of 22% in the first half of FY26. A three-year restraint of trade clause will prevent thl from competing in the UK & Ireland markets, ensuring a smooth transition for Indie Campers.
Market and Operational Outlook
thl CEO Grant Webster emphasised the company’s commitment to disciplined capital management and acknowledged the challenges faced in scaling the UK & Ireland business. He expressed gratitude to the UK leadership team for their professionalism throughout the sale process.
Indie Campers CEO Hugo Oliveria welcomed the acquisition, highlighting the opportunity to build on thl’s established brands and operational foundation in the region. The completion of the transaction is expected in the fourth quarter of FY26, subject to lease consents and other customary conditions.
This divestment represents a pivotal moment for thl as it refocuses on core markets and seeks to strengthen its balance sheet amid evolving market dynamics. Investors will be watching closely to see how the company reinvests the capital and manages the short-term earnings impact.
Bottom Line?
thl’s UK & Ireland exit signals a sharper focus on capital efficiency but raises questions about growth prospects in key international markets.
Questions in the middle?
- Will thl reinvest the freed capital into expanding its core markets or new ventures?
- How quickly can Indie Campers integrate the acquired assets and maintain operational momentum?
- What are the risks if landlord consents for lease assignments are delayed or withheld?
