German tour operator, TUI AG, has offered to purchase Transat France and Tourgreece from Canadian travel specialist, Transat A.T. Inc., for an enterprise value of EUR54.5 million (USD62.2 million).
On that basis, Transat said in a statement that has now granted exclusivity to TUI AG with the deal expected to close before October 31, 2016, anti-trust and trade union approvals notwithstanding.
"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.
The proposed transaction is not expected to impact Transat's transatlantic program, or the operations, personnel, distribution network and growth strategy of its Air Transat (TS, Montréal Trudeau) air carrier business.
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, while for its part, Athens-based Tourgreece is an incoming tour operator. Together, the two units employ 800 staff and generate total sales of approximately EUR450 million (USD513 million).
