Transat Gets Firm Offer From TUI For French, Greek Tour Operations
Transat A.T. Inc. has received a firm offer
from TUI AG to purchase its Transat France and Tourgreece tour operating
business units for an enterprise value of €54.5 million.
As a result, 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 31OCT, 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
"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,”
said Elie Bruyninckx, Managing Director of TUI
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.
Transat says the proposed transaction would have no
impact on its transatlantic program or the operations, personnel, distribution
network and growth strategy of Air Transat.