Australian company MFS Living and Leisure has announced a cash offer for New Zealand-based leisure operator Tourism Holdings.

The deal, worth NZ$277m (AUS$247m, US$204m, £103m, 151m euro) will see MFS become one of the largest leisure owner and operators in Australasia.

Chief executive of MFS, Marshall Vann, said: “THL has an excellent portfolio of New Zealand and Australian assets and a quality management team.

“From this platform we intend to grow the business and generate benefits for New Zealand tourism, which in turn will assist MFS to grow.

“MFS will implement a sensible capital investment program in New Zealand to support the growth strategies of many of the THL attractions.

“By cross-selling programs that cover our Australian and Asian businesses and implementing a strategic future capital investment program, we believe we can help boost visitor numbers to New Zealand and grow the country’s number one export industry,” he added.

“We are focused on buying or developing leisure businesses with steady income streams, high entry barriers in stable or emerging economies, and where there is a large middle class and established tourism industry.

“Also, the peak season for THL is the southern hemisphere summer, while for the majority of MFS’s assets it is the southern hemisphere winter. Our earnings base will be diversified across tourist seasons, countries and attractions, providing more balanced future distributions over a year.”

THL’s portfolio of tourism and leisure assets in New Zealand includes Fullers Bay of Islands, Awesome Adventures, Kelly Tarlton’s Antarctic Encounter and Underwater World, Waitomo Glow worm Caves including Aranui Cave and Ruakuri Caves, The Legendary Black Water Rafting Co, Milford Sound Red Boats, Milford Deep Underwater Observatory, Johnston’s Coachlines including Ski Shuttle, Great Sights, including Discover New Zealand retail.

MFS Living and Leisure’s portfolio currently includes the Oceanis aquarium brand, tree-top walks and ski fields.