Kelsian Group (ASX:KLS) and Belaire Ferries won new contracts from Auckland Transport to provide passenger ferry services in the city, following their submission of a joint bid, according to a Thursday filing with the Australian bourse.
Services under the new contracts will start July 1, 2027, with expected revenue generation of NZ$101 million over the initial seven-year term, per the filing.
Kelsian will procure five new ferries over the contract term to replace the initial ferry fleet at a total estimated capital cost of NZ$38 million.
Additionally, Kelsian has agreed to acquire Belaire Ferries for NZ$8.9 million to expand its presence in the New Zealand market. The deal includes upfront cash consideration of NZ$2.8 million in addition to deferred and contingent consideration estimated at NZ$6.1 million, payable between fiscal 2027 and fiscal 2029 if certain milestones are met.
The acquisition is expected to complete in the first quarter of fiscal 2027.