Transat receives a firm purchase offer from TUI AG for its French and Greek tour operating units

Published on : Friday, May 13, 2016

transatTransat A.T. Inc., one of the world’s largest integrated tourism companies and Canada’s holiday travel leader, has received a firm offer from TUI AG, the world’s leading tourism business, to purchase its Transat France and Tourgreece tour operating business units for an enterprise value of €54.5 million, subject to working capital adjustments at closing. On that basis, Transat has granted exclusivity to TUI AG. The contemplated transaction is subject to approval from anti-trust authorities and obtaining the advisory opinion of Transat’s France Works Council (employees representatives), as mandated by French Law. Closing is expected to take place before October 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.

 

“I am very satisfied about the prospect of Transat France joining TUI. 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,” noted Elie Bruyninckx, Managing Director of TUI Western Region.

 

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 million.

 

The proposed transaction would have no impact on Transat’s transatlantic program, as well as 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 will not comment further on the proposed transaction, at least until it releases its quarterly results on June 9, 2016.

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