Transat receives purchase offer from TUI AG

Transat has a received a firm purchased offer from TUI AG for its French and Greek tour operating units, the tourism company revealed today (May 11).

TUI AG, a Germany-based multinational tourism company, has placed a bid to purchase Transat France and Tourgreece tour operating business units to the tune of €54.5 million, subject to working capital adjustments at closing, Transat stated in a release.

“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,” Jean-Marc Eustache, president and chief executive officer of Transat A.T. Inc., stated in a release.

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 ’80s, 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 company stated.

The proposed transaction will reportedly 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, 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.