TRANSAT TO SELL FRENCH AND GREEK OPERATIONS TO TUI

Posted on 05/12/2016 | About Athens, Greece

Transat A.T. Inc. says TUI AG has made a firm offer to purchase its Transat France and Tourgreece tour businesses, worth about $80 million. TUI Group is a multinational travel and tourism company headquartered in Hannover, Germany. It is the largest leisure, travel and tourism company in the world.

Transat says it expects the €54.5-million deal with TUI AG to close before the end of October, pending various approvals. Transat A.T. operates an integrated travel business that includes flights on its Air Transat airline and vacation packages in North America, Europe and other areas. “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 is the fourth largest integrated tour operator in France, where it operates under the Vacances Transat and Look Voyages brands. Transat established itself as a tour operator in France in the early 80’s, and acquired Look Voyages in 1996. Based in Athens, Tourgreece is an incoming tour operator. Together, Transat France and Tourgreece have 800 employees. Total sales represent approximately €450 ($659) million. The proposed transaction would have no impact on Transat’s transatlantic programme, nor on the operations, personnel, distribution network and growth strategy of air carrier Air Transat, another business unit of Transat, which operates a number of direct routes between Canada and some 30 European cities, as well as 30 sun destinations in Mexico and the Caribbean from Canada.

The company said it will not comment further on the proposed transaction, at least until it releases its quarterly results on June 9, 2016. TUI Group, which is also a Sunwing partner, operates in 180 destinations around the world and employs 76,000 people in 130 countries.