TUI AG Makes a Bid for Transat's French, Greek Units
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Germany-based TUI AG, one of the world’s leading travel companies, has announced its intent to purchase Transat France and Tourgreece tour operating business units from Transat A.T. Inc., a Canada-based travel provider. Headquartered in Montreal, Transat offers air transportation, accommodation and destination services and focuses mainly on the Canadian and European markets.
Details of the agreement, which must still obtain approvals by respective anti-trust authorities as well as Transat's France Works Council (employee representatives), includes an offer of €54.5 million by TUI AG for the two European units. The deal is anticipated to close by Oct. 31, 2016.
"This transaction would be a major step toward delivering on our strategic plan, which calls for a focus on Transat's profitable expansion in the Americas and on the transatlantic market as a vertically-integrated tour operator, leisure airline and hotel company," said Jean-Marc Eustache, president and chief executive officer of Transat A.T. Inc.
Headquartered in Paris, Transat France operates under the Vacances Transat and Look Voyages brands in France and is the nation’s fourth-largest integrated tour operator. Tourgreece, an inbound tour operator, is based in Athens. The two business units account for 800 employees and total annual sales of about €450 million.
"I am very satisfied about the prospect of Transat France joining TUI,” said Elie Bruyninckx, managing director of TUI Western Region. “Transat France is an organization with many assets and talents that will further enhance the presence of TUI in France. The synergies created would be beneficial for TUI and our French customers. Joining TUI's and Transat France's forces means that we would be able to offer a broader and unique product range with more flexibility for our guests, more departure airports and more choice in length of stay. TUI's trusted image, our power to continue investing in more innovation would enable us together to offer great value for money."
If successful, the transaction will not affect Transat's personnel, its transatlantic program, or its air carrier Air Transat, which operates direct routes between Canada and nearly 60 destinations in Europe, Mexico and the Caribbean.
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