Allegro II Acquires Great Southern Rail
On 30 March 2015, Allegro Funds Pty Ltd (Allegro) announced its plans to acquire Great Southern Rail (GSR) which operates the transcontinental passenger rail services, The Ghan, The Indian Pacific and The Overland in Australia from Serco.
Allegro Founding Partner and Managing Director, Adrian Loader said Allegro invests in businesses that require capital and expertise to grow. “Allegro has acquired this exciting and iconic Australian asset in order to capitalise on the forecast growth of the luxury tourism sector in Australia.
“We view this as an opportunity to cater to the high-end experiential tourism market. The Ghan and The Indian Pacific are iconic rail experiences positioned to provide guests with an opportunity to experience an authentic Australian adventure through the comfort and luxury of travelling by rail,” he said.
The acquisition leverages Allegro’s experience in the domestic tourism industry, building on the strong growth Great Southern Rail has experienced in recent years.
“Through working with management and other stakeholders, we plan to build value and realise the growth potential of these unique Australian assets.
“Allegro will be funding the acquisition with 100% equity and we look forward to partnering with GSR’s existing management team to generate further benefits for the company’s employees, customers and suppliers,” Mr Loader concluded.
It is anticipated key management personnel will continue under the proposed ownership arrangements, including GSR’s Chief Executive Officer, Chris Tallent.
“We look forward to continuing our transformation of Great Southern Rail into one of the world’s greatest rail experience companies in partnership with an experienced tourism investor like Allegro,” said Mr Tallent.
The transaction is expected to be completed within six weeks, subject to customary approvals.
About Great Southern Rail
Great Southern Rail has been a wholly owned subsidiary of Serco Asia Pacific since 1999.
Great Southern Rail operates three trains: The Indian Pacific (Sydney-Adelaide-Perth), The Ghan (Adelaide-Alice Springs-Darwin) and The Overland (Melbourne-Adelaide).
Great Southern Rail’s national headquarters and operations are based in Adelaide, South Australia.