SKB parachutes into New Zealand

Leisure business Skydive the Beach (ASX: SKB), which debuted on the Australian stock market this year, has come to an agreement to buy New Zealand's Skydive Queenstown operation for $15.5 million. Skydive Queenstown is New Zealand’s leading tandem skydiving company, holding approximately 33% of New Zealand's skydive market share. Skydive the Beach said the transaction enhances the group's market leading position with a major established NZ growth business. The acquisition is also expected to increase Skydive the Beach's tandem dives by 20% annually, helping lift its revenue forecast to $54.9m for the financial year, up from its previous guidance of $47.5 million. To fund the acquisition, Skydive the Beach has launched a fully underwritten $19.6 million capital raising. SKB shares closed up 7% for the week. We own Skydive the Beach in the investment portfolio.