Backpacking operations take major shift with new company merger

Tuesday, July 25, 2006

Leading backpacker companies ACB Group Holdings Limited, known locally as Beyond Backpackers, and base Backpackers have announced their merger, the entity will now operate under the brand name “base brand.”

Both companies bring top industry standards to the merger, with Beyond Backpackers a two-time NZ Tourism Awards winner and base named one of the world’s top 10 ‘Hip Hostels’ in Lonely Planet’s recently released Blue List.

The new company will now be the leading operator of quality backpacker accommodation, bars, travel outlets and job placement services in Australia and New Zealand, offering over 3000 beds, 10 bars and 34 travel outlets.

The new organisation will operate in major cities, including Auckland, Christchurch Sydney and Melbourne, with a total of eight backpacker hostels in New Zealand and three in Australia.

“This merger is a natural progression for both businesses. We have been pursuing similar business models and have complementary physical and human resources. Together we can deliver an even better experience for our travelers and this, in turn, will assist to grow the industry as a whole,” said Campbell Shepherd, New Zealand CEO, and John Osborne, Group CEO in a joint statement. “Growth in the backpacker market is a global trend driven by the increasing popularity of backpacking across a wider range of nationalities and age groups and we are committed to realising this opportunity," continued Shepherd.

“[we are] delighted with the merger, which creates a market leader in Australasian backpacker accommodation and delivers a wealth of opportunities for travellers, staff, suppliers and business partners,” said major investors including Ironbridge Capital, Accor Asia Pacific Hotels and Ivany Investments.

Now with the merger underway, the new company will work to expand, with Australia being the first market focus.