Experience Co has agreed to merge its Australian and New Zealand skydive and aviation businesses with Inflite Group under a new NZ holding company, receiving $41 million cash and retaining a 32.5% stake.
- Non-binding term sheet signed with Inflite Group
- Combined aviation-tourism business valued at $110 million
- Experience Co to receive $41 million upfront cash
- Retains 32.5% equity in merged entity
- Deal subject to due diligence and approvals
Experience Co Moves to Divest Skydive Unit While Keeping Skin in the Game
Adventure tourism operator Experience Co Limited (ASX:EXP) is preparing to carve out its Australian and New Zealand skydive and aviation businesses through a proposed merger with New Zealand’s Inflite Group. The deal, structured under a new New Zealand holding company dubbed MergeCo, would see Experience Co receive a substantial cash injection while maintaining a significant minority stake.
The non-binding term sheet signed on 14 July sets the stage for a combined aviation-tourism platform spanning both countries, with the merged entity estimated to have an enterprise value of approximately $110 million on a cash-free, debt-free basis. Experience Co is slated to receive around $65 million in total consideration, including $41 million in upfront cash, a $5 million vendor note repayable after five years, and a 32.5% equity interest in MergeCo valued at roughly $19 million.
Strategic Rationale Behind the Transaction
The deal emerges from Experience Co’s ongoing strategic review of its Skydive Australia business unit, which has faced operational headwinds including weather disruptions and industrial action earlier in the year. This move aligns with the company’s recent pattern of portfolio rationalisation, following the sale of its Wild Bush Luxury portfolio in May 2026, which was aimed at sharpening the focus on scalable adventure tourism segments and reducing corporate debt.
Inflite Group brings a complementary footprint with its integrated aviation-tourism operations across four key New Zealand locations, including scenic flights, ski planes, helicopters, charters, skydiving, and glacier guiding. The combination is intended to leverage both companies’ strengths to create a more diversified and resilient business in the competitive Australasian tourism market.
Governance and Future Prospects
Post-transaction, existing Inflite shareholders will hold the majority 67.5% stake in MergeCo, while Experience Co will retain its 32.5% minority interest. The arrangement also provides Experience Co with board representation and customary minority protections, ensuring it maintains a degree of influence over the combined entity’s strategic direction.
Completion hinges on several conditions, including satisfactory due diligence, final transaction documentation, financier approvals, and regulatory and shareholder consents. Experience Co cautions that there is no guarantee the transaction will proceed to completion.
The proceeds from the deal are expected to be deployed towards debt reduction, reinvestment in growth initiatives, or capital management, though Experience Co has yet to specify its exact plans. This transaction represents a significant pivot point for the company as it seeks to streamline operations and strengthen its financial position amid a challenging operating environment.
Bottom Line?
Experience Co’s partial exit from its skydive business could unlock value and reduce debt, but execution risks remain as approvals and due diligence unfold.
Questions in the middle?
- Will the merged entity deliver operational synergies that justify the $110 million valuation?
- How will Experience Co deploy the net proceeds amid ongoing market pressures?
- What regulatory or shareholder hurdles could delay or derail the transaction?